Inherited Shares - Capital Gains Tax?

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liteweight

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My daughter has just inherited shares to the approx. value of 25k from her grandmother. Will she have to pay capital gains tax on these when she sells? Is stamp duty applicable.
 
Re: Inherited Shares - Capital Gains Tax??

[broken link removed] and CitizensInformation have some summary information on Capital Acquisitions Tax (i.e. Inheritance Tax and Gift Tax) which might be of interest to you. [broken link removed] also has summary information about Stamp Duty. If in doubt get independent, professional advice.
 
Re: Inherited Shares - Capital Gains Tax??

Have a look at Dominic Coyle's advice column in the business section of today's Irish Times (16/02/2007) - covers the area of CGT on inherited land.
 
Thanks for that. I'm aware of the thresholds for inheritance tax and she's ok there (not liable). I thought I had read somewhere that CGT was payable on any profit made on shares. Her gran bought these a long time ago so I don't know whether she'll pay tax on the sale i.e. sale price less cost, less 1270 @ 20%, or, whether the date she received the shares is deemed to be their value.
 
Hi liteweight

There is no Capital Gains Tax liability on either the estate or on your daughter.
Death is not a disposal for CGT purposes. Your daughter acquires the shares at the market value at the date of death (or maybe, more precisely, when she receives them from the executor?). She will be subject to CGT on any gains between now and when she disposes them.

This is a very interesting tax planning point. People who are investing for the very long term and who expect to leave assets behind them when they die, should invest directly in shares and property and not through unit-linked funds. The unit-linked fund is subject to 23% exit tax when the person dies, but the gains on directly held assets are tax-free.
 
The Exit Tax of 23% can be offset against the Inheritance Tax payable on the same asset
 
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