definition of valuation date...CAT etc

[Seabass]

Hi All

In terms of the farmer test after inheriting agricultural property through a will, which date would be seen as the valuation date ? date of death or date probate was taken out ?

i.e. if there were to be a delay between these two dates and beneficiary's assets satisfy the test at date of death but not at date of probate (1-2 years later) Which date should be used for farmer test calculation and subsequent revenue return ?

Would it be fair to say that date of death is all that matters ?

 

[Vanilla]

As far as I am aware generally the date of death is the valuation date. There can be circumstances in which ones tax advisor would argue for the valuation date to be the date of grant where this would favour the beneficiary but if it does not then it can be taken to be date of death.

 

[Nige]

In the case of agricultural relief, use the date of death.

 

[paddytt]

In the case of agricultural relief, use the date of death.

What would you say in the case of agricultural land where ag relief is NOT available? In our case, to minimise the tax, the date of grant would be far more beneficial as land values have dropped....

thanks

 

[dazza21ie]

Revenue regularly argued that the Valuation date is the date of grant and not the date of death where there has been a couple of years difference between the two. I regularly use the Date of Grant as the valuation date and this has not been queried and have queries when i use the date of death. However I have never tried submitting a lower value on the Tax Return than was submitted on the Inland Revenue Affidavit.

 

[ramble]

You also need to be careful about when you entered into beneficial ownership. The date of death is usually the valuation date with farms because the beneficiary usually farms the lands and is receipt of the income from it from the date of death.