tax due on sale of inherited property, not principal primary residence.

[JoeB]

Hi

I have searched for previous threads on this and on Revenue but can't find the info I need.

Basically I understand that a child can inherit approx 450,000 and there'd be no (inheritance) tax liability due.. so that's good.

I also understand that there's no Capital Gains Tax due on increased Capital Value of assets that accumulated during the deceaseds lifetime.. but that there may be a Capital Gains Tax liability on Capital increases since the date of death (or date of valuation?) and the date of sale of the assets.. again ok.


However my question is this.. if a few siblings inherit a property from a parent, but the siblings don't live in the house.. is there any tax due on the sale of the property?, or do the children receive their share and only have to pay inheritance tax if it is over the large threshold of approx 450,000?

Is there a time limit on this?
example AAA.... What if the house was unsold for three years since the Grant of Probate, the children haven't been living in the house.. the house sells for 330,000.. each child gets 110,000.. do the children have to pay any tax on the 110,000 they each receive?


example BBB....... What if the house went unsold for ten years after Grant of Probate, and eventually sold for 450,000, giving each child 150,000.. again is there any tax due? (remember, the children don't live in the house)


Assume the house in the above examples was valued at 300,000 at date of death or date of probate (whichever is correct..)

Would it only be the Capital Gains Tax that must be settled.. i.e CGT on 30,000 in example AAA, and CGT on 150,000 in example BBB???


Any help on this or links to info would be much appreciated.

Cheers
Joe

 

[Gervan]

The value of the inheritance is as at valuation date (ditto CAT thresholds), which is usually the date of death, but a bit of a movable feast sometimes. So that determines any CAT liability.

After that, you are talking CGT on the gain between valuation at valuation / inheritance date, and the proceeds at date of sale. Each child has small annual exemption, so it wouldn't be €30,000 taxed in AAA.
In BBB I'm sure there would be some upkeep expenses or renovation costs, agents fees as expenses against the €150,000 gain, but basically you have the picture.