CAT and valuations

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Mcdalel

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If anyone can answer this Q it would be great.

Parent died and left one offspring. Willed everything to them. One house and cash assets.

So threshold is 335k for a child.

House was original valued on death at 300k. Grant of probate was issued and amount on it was 394k (assuming this is value of house + cash assets?)

Solicitor advised that house is now being transferred into child's name, and needs another valuation, for cgt purposes. Estate agent valued house now at 320k.


So what happens? Debts don't amount to much, just funeral expenses and solicitors fees.

Does the extra 20k come out of the cash assets or how does that work?
 
Mcdalel said:
House was original valued on death at 300k. Grant of probate was issued and amount on it was 394k (assuming this is value of house + cash assets?)

Estate agent valued house now at 320k.

Does the extra 20k come out of the cash assets or how does that work?
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You seem confused here? Your query seems to be about CGT and not CAT as per the thread title?

If the house is worth €20k more now than at the time of death then that €20k (less allowable expenses, if any) will, most likely, be assessable for CGT @ 33% payable by the executor resulting in a tax liability of under €7k.
 
Mcdalel said:
Solicitor advised that house is now being transferred into child's name, and needs another valuation, for cgt purposes. Estate agent valued house now at 320k.
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There is no CGT in this situation. The relevant tax is CAT.

For CAT purposes, you must value your inheritance at the valuation date - and this would trigger a need to revalue the house (unless valuation date was taken as date of death, which can happen).
 
I think thet the estate is liable for CGT on the increase in the house value from date of probate to date of transfer
 
Is the house just being signed over to the beneficiary of the will? If so, there's no CGT involved.
 
To answer the questions. House was valued after death for probate purposes at 300k. probate was granted on 17th Feb and solicitor advised that we needed another valuation and said it was for revenue. That was valued at 320k. House was willed to only child and he is the only beneficiary of this will.
 
Date of valuation for tax purposes is complicated - but in this case it doesn't make any difference - either the gainof 20K is taxable for CGT or the extra inheritence of 20K is taxable under CAT as the total estate is above the threshold for parent to child
 
Mcdalel said:
To answer the questions. House was valued after death for probate purposes at 300k. probate was granted on 17th Feb and solicitor advised that we needed another valuation and said it was for revenue. That was valued at 320k. House was willed to only child and he is the only beneficiary of this will.
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I had similar situation with similar amounts. I rang tax office about this recently for clarity, and yes you are liable for CAT on the difference of probate value of house and sale value. Expenses are allowed against this, so conveyancing fee, estate agent fee, house clear out costs and bills to "keep" house between death of relevant person and the sale of house (heat, gas, water etc.). And cost of solicitor doing probate, if you went down that route. Possibly funeral bill also. All these add up, and are tax deductible. You may find you are left with little to pay CAT on.
 
Anyone know about another tax relief, on a property other than one's PPR?
I am trying to claim for dependent relative relief, on an inherited property.
A property provided tax free to a dependent relative.
Its the CGT on sale of the inherited property, that is what I am trying bring down.
 
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