How to submit Corrective Affidavit

[pat127]

Could someone please advise me exactly what I have to do to prepare a Corrective Affidavit for Revenue? I have because of inadequate understanding on my part understated the 'reasonable estimate' of the value of a house when making a personal application for Probate. Not realising it might be useful I didn't think to get a professional valuation. The eventual sale price is approx 8% higher than the estimate creating a not-insignificant liability. I believe I can furnish information supporting my claim which includes the fact that there is no liability for CAT, the total Estate being only 60% of the combined Beneficiaries' exemption limits.

Is the Affidavit a standard form obtainable online or do I have to make it out myself? Do I submit it before any tax is paid? Should I provide documentary proof of original estimate, sale price, deductibles, increase in house values in the county concerned etc? Any tips?(!)

For people thinking of doing Probate themselves...it's true what is said, it is easy, the Probate staff are extremely helpful, it is fast, it's cheap BUT be sure you learn something about CGT!

Any info appreciated,

Thank you,


Pat

 

[jpd]

You can download the form (CA26) from the revenue web site http://www.revenue.ie/ under Forms, CAT.

You need to get it sworn by Commissioner for Oaths or a solicitor and then submit it to revenue.

 

[mf1]

I think you need to bring it to the Probate Office beforehand - this is so you can pay any increased Probate fees.

I can sympathise with OP - its simple to do. However, Revenue may not always accept the situation and may claim that the original value - date of death - was correct and that the sale price - months later- simply reflects the increase in value - i.e. the Capital Gain. They can use their own valuation office to try and ascertain what they perceive as the correct date of death value. It would be very helpful ( and I think persuasive) if OP could provide background info to Revenue showing actual similar properties and prices achieved - both at date of death and date of sale.

mf

 

[MOB]

"The eventual sale price is approx 8% higher than the estimate creating a not-insignificant liability."

Unless the interval between death and sale is very short, an 8% increase in value would be quite normal. Property prices have increased at more than 8% per annum in the last 12 months haven't they? I think that you should get proper legal\taxation advice before proceeding down this road. If you are the executor, you can be liable for any underapayment of tax by the estate, so be careful.

 

[pat127]

"The eventual sale price is approx 8% higher than the estimate creating a not-insignificant liability."

Unless the interval between death and sale is very short, an 8% increase in value would be quite normal. Property prices have increased at more than 8% per annum in the last 12 months haven't they? I think that you should get proper legal\taxation advice before proceeding down this road. If you are the executor, you can be liable for any underapayment of tax by the estate, so be careful.

The interval was about a year and I'd agree with you if the property was in Dublin instead of Leitrim where prices increased by 2% in 2005 according to a survey I read. I won't labour the point in detail but I personally believe that an old property, unoccupied for 8 years and needed extensive renovation isn't affected by inflationary pressures in the same way that a modern, or modernised property is. In fact the market response was so muted that I felt that we were lucky to have sold it at all. Revenue mightn't agree with me of course so I may just have to pay for my stupidity! After all, with absolutely no need to be concerned about CAT, I'd of had no difficulty having a higher initial estimate accepted.

Point noted about taking care - thanks.

P

 

[pat127]

I think you need to bring it to the Probate Office beforehand - this is so you can pay any increased Probate fees.

Thanks mf1 - You seem to be right about that as I notice that there is provision on the form for a Probate Registrar stamp.

jpd - Thanks for the info regarding the form which I downloaded

P