CGT query on property inherited at different times

D

Dasher

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Hi all, I have a query on inherited property now being sold.

In 2006 my sister died, leaving her house 50% to our mother and 25% each to my brother and I. House valued at €350000. CAT paid by brother and I.
In 2012 our mother died, leaving her 50% of the house equally to my brother and I. House now valued at €170000.
We sold the house last month for €280000.

The house had been used as a 'holiday home', occasional residence by family members only since 2006, not rented out.

My understanding is that I am now liable for CGT on the 25% of the house I inherited from my mother, as the value has increased since I inherited in 2012 - is this correct ?
However, as the value of the 25% I inherited directly from my sister in 2006 has fallen, does this entitle me to a CGT loss, which I may use to part offset my gain ?

Can I also offset (a) solicitor fees at original probate of sisters will (b) cost of house valuations at probates of sisters / mothers wills and at sale (3) works done last year on front garden of house and relaying of driveway - is this an enhancement or merely maintenance ?

I am a PAYE tax payer and use myAccount, but am not registered for CGT. Whats the best way for me to pay CGT before deadline on 15th November ?

Finally, if I overestimate my liabilities and pay too much to Revenue now, will they reimburse me at end of year when I send in tax declarations ? (I usually do a Form12)

Thanks in advance for any help on this

Dasher
 
I am not sure I followed this story correctly but my reading of it is
You acquired 25% of house in 2006 valued at € 87,500
You acquired a further 25% in 2012 valued at € 85,000
Total cost of acquisition of your 50% is € 172,500
Your sale proceeds are € 140,000
You have a Capital Loss of € 32,500 so no tax is due

Have I understood correctly?

Costs a) and b) were met, or should have been met by the estate before distribution
Costs c) were probably maintenance and not enhancement but without more details it is impossible to say definitely
 
Hi jpd, thanks for your reply and for setting the math out so clearly.

So, following your example :-
Yes, I acquired 25% of house in 2006 valued at € 87,500
I acquired a further 25% in 2012, but this was valued at €42,500 (€170,000 was the total valuation at that time)
So total cost of acquisition of my 50% is € 130,000
Sale proceeds are € 140,000, less my solicitor/auctioneer fees of €3250.
This gives me a Capital Gain of € 6,750 (am I correct in this ?)

My personal CGT allowance is €1,270, so I am liable for CGT on (gain-allowance) = €5,280 ?

The work on the driveway was to replace the driveway & small path in front of house as they were both cracked and unsightly.
The garden was re-modeled, shrubs removed, small patio installed, etc.
Both jobs done solely to facilitate selling of the property.
I had hoped that the €2000 cost to me would be deemed allowable.

Also, solicitor fees in 2006 and 2012 - you believe they would not count as 'allowable expenses' for CGT now ?
However, as I remember, they were allowed as expenses when calculating for CAT, certainly back in 2006. (the figures I have given for house values are the full values, not the value after payment of fees).
While the fees would have covered the full probate of the wills, some of each must have been related solely to inheritance of the property ?

Chris
 
Your figures look right
The solicitors fees reduced the amount of CAT payable, so you can't use them again to reduce the CGT

As for the € 2,000 - might be allowable but you would only get one half, of course. Presumably, the selling price incresed by more than the € 2,000? Honestly, I don't think that is an enhancement expense, but worth asking/trying to get it past the Revenue. Ask the solicitor handling the sale - he/she will have to vouch for CGT due before paying the balance of the sale over to you and your brother
 
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