Huge Share CAT Bill

Discussion in 'Wills, inheritances and gifts' started by Michelleo, 8 Nov 2018 at 9:59 PM.

  1. Michelleo

    Michelleo New Member

    Posts:
    1
    We were very grateful to receive word a distant relative of mine had kindly named me as residual beneficiary. I was also named executor. The estate consisted of cash and shares. The cash was distributed to the named beneficiaries post Ire probate. There was much delay with both UK and Ireland probates issuing due to tardiness on the part of the legal firm looking after the estate. I was left completely dismayed this week to discover I am on the hook for the full CAT bill even though hardly any of the shares can be sold due to missing share certs. I have received very little of my inheritance as only 1 holding could be sold. I specifically requested that the shares be liquated with proceeds then passing to me. I am also on the hook for the CGT. We have no choice but to empty our accounts and borrow from family in order to pay the CAT bill on time. I wanted to know if anyone can advise as to the usual course of events in this circumstance? I understand it will not be possible to sell the shares for sometime , certainly not this side of Christmas. I would have thought we would not be liable for CAT until such time as we actually receive ‘money’. Thanks in advance for any advice or suggestions
     
  2. Brendan Burgess

    Brendan Burgess Founder

    Posts:
    35,989
    You should give the various dates - of death, grant of probate and transfer of shares.

    What date do you have to pay the CAT by?

    How did the CGT arise?

    Revenue is understanding in cases like these.

    By the way, you should edit your post and break it into readable paragraphs and points.

    Brendan
     
  3. dublin67

    dublin67 Frequent Poster

    Posts:
    149
    There are a number of dates in an inheritance for tax purpose. There is the date of inheritance and the valuation date with each having a different meaning and function. The date of inheritance is, in most instances, the date of date. The valuation date can be the date when the grant of probate was extracted but there are exceptions. The key thing about the valuation date is that it determines when the CAT is payable and the IT38 tax form is due to be filed. If the valuation date is in the period 1 September 2017 to 31st August 2018 then the filing and payment is 31st October 2018 (with ROS extension little later).

    The key thing about valuation date is that you need to be capable of having the assets transferred into your own name. If the share certificates are missing then the valuation date may not have passed as the assets may not be capable of being put into your own name. It is possible for an inheritance to have different valuation dates - one for cash and one for shares. Take a look at the this on the Revenue website:
    https://www.revenue.ie/en/gains-gif...tain-benefits/what-is-the-valuation-date.aspx

    It may be worth your while talking to a CAT specialist.
     
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