IT38 not adding increased group threshold

8

8till8

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I'm completing the IT38 via my enquires for my wife.
  1. She inherited in Oct-24 when the group threshold was €16,250 and used the full threshold amount
  2. She then received a gift in Feb-26 when the same group threshold increased from €16,250 to €20,000 so there is now €3,750 tax free threshold to be availed of.
The problem is when I enter this online it doesn't calculate the additional €3,750 which I assume is wrong, the allows should be available to use.

On the first disponer the tax calculation is correct, the group threshold is shown as €16,250 with zero prior benefits. However on the second disponer is shows group threshold €20k which is correct but shows unused portion of threshold as zero.

any advice on this error?

I'm wondering if I do two separate IT38's instead of one will the additional allowance appear on the second one?
 
jpd said:
The IT38 for the Oct-24 inheritance was due 31 Oct 2025 - did you file a return then? Sorry correction, the date of death Sept-24, valuation & grant date was Sept-25 and actual payment Nov-25 -- inheritance was €30k
The IT38 for Feb-s6 is due 31 Oct 2026 Gift was 15k in Feb-26

What are the amounts involved ?
Click to expand...
 
That doesn't fit the facts you are quoting

The Category C threshold was
16,350 up to 1st Oct 2024
20,000 from 2nd Oct 2024 to 6th Oct 2026
22,000 from 7th Oct 2025

Can you please provide the correct dates and amounts
 
ok will do so here it is a bit clearer

Inheritance
Date of death 3-Sept-24 (my understanding is group threshold applies on date of death)
Probate date 22-Sept-25 (this is the valuation date)

Group C threshold as of 3-Sept-24 was €16,350
Taxable value €30,000
Taxable excess €13,750
Tax at 33% €4,538

Gift
Date of gift 4-Feb-26
Taxable value €15,000

This is whats appearing on the draft IT38:

Tax on Current Benefit
Group Threshold €20,000
Taxable value prior benefits €30,000
Unused portion of threshold €0
Total taxable Excess €15,000
Tax at 33% €4,950


So the error is "Unused portion of threshold €0", this should be €3,750 because the threshold increased from €16,250 to €20,000..... am I right? If so how do I correct it?
 
8till8 said:
So the error is "Unused portion of threshold €0", this should be €3,750 because the threshold increased from €16,250 to €20,000..... am I right?
Click to expand...

The system is calculating correctly.

The "unused portion of threshold" would be €3,750 if the inheritance amounted to only €16,250. However, the inheritance was €30k.

As the group threshold applicable to the gift is €20,000 and the taxable value of prior benefits exceeds this figure, the small increase in the threshold doesn't provide any benefit here. It would have provided a benefit if the prior benefits were less than €20,000.

Similar issue discussed here: https://www.askaboutmoney.com/threa...er-raised-cat-thresholds.243928/#post-1998976
 
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