Inheritance Tax Valuation Date

[aisling o'b]

Hi,

I used a solicitor to extract the grant but have finished with him now so I don't want to go back to ask this question.

I need to do a CAT return soon to pay tax on the shares I inherited. I'm just slightly over the threshold so there is not loads of tax payable. However, I want to get it in in time for the end of October.

For the shares, what valuation date should I use? (i) Date of Death Valuation (ii) or the date the grant of probate issued?

I didn't have access to the shares until the grant was issued so there was nothing I was able to do with them between the date of death and the date the grant issued.

Am I correct in thinking I should pay tax based on their value on the date the Grant was issued and not the date of death (which is the value that went on the CA24 form for the Probate Office).

Many thanks.
Ais.

 

[dublin67]

The value for CAT purposes is the value at date of death. In most instances the timing of when you file a return is determined by when the grant of probate issued. So if the GOP issued in the year ending 31 August 2017 then the IT38 filing date and payment is 31st October 2017 (or whatever the ROS extension date is).

 

[aisling o'b]

Many thanks dublin67. Still a bit confused after doing a bit more digging here on AAM. Some of the posts on the following thread are saying date of death for the threshold and rate of tax but date of grant of probate for the actual valuation. In my case, the value of the shares.

https://www.askaboutmoney.com/threa...death-or-final-probate-budget-changes.174125/

Thanks again.

 

[dublin67]

You are correct - the date of death determines the rates, threshold etc but the valuation date (i.e. date of issue of grant of probate) determines the amount on which you pay tax. Accordingly it is the value of the shares on the date of grant of probate that determines what you pay tax on.

 

[Gordon Gekko]

The value for CAT purposes is the value at date of death. In most instances the timing of when you file a return is determined by when the grant of probate issued. So if the GOP issued in the year ending 31 August 2017 then the IT38 filing date and payment is 31st October 2017 (or whatever the ROS extension date is).

Yes, the above is incorrect.

The date of death tends not to be valuation death unless the asset of effectively "automatically" inherited.