Where to put Exit Tax credit in IT38 online form?

D

dubguy

Registered User
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Hi,

I am doing the IT38 online form to file an inheritance. Part of the inheritance was in the form of a life product that had a 41% exit tax. My understanding is that this is declared gross on the IT38 and a credit for the exit tax paid is then taken. I can't figure out where this credit goes on the form. There is a section for CGT, which seems to be mainly related to Gift Tax but none for Exit Tax.

Any help would be appreciated.
 
Sorry, found it. Second half of last para here, https://www.charteredaccountants.ie/taxsource/1997/en/act/pub/0039/nfg/sec0739G-nfg.html ...

Under section 104 of the Capital Acquisitions Tax Consolidation Act 2003, where inheritance tax is charged in respect of property on an event happening and the same event constitutes the disposal of an asset for capital gains tax purposes, any resulting capital gains tax paid is allowed to be deducted from the net gift or inheritance tax as a credit. On a disposal/transfer of units resulting from the death of the unit holder exit tax will generally be payable. That amount of tax is treated as an amount of capital gains tax for the purposes of section 104 of the Capital Acquisitions Tax Consolidation Act 2003.
 
dubguy said:
Hi,

I am doing the IT38 online form to file an inheritance. Part of the inheritance was in the form of a life product that had a 41% exit tax. My understanding is that this is declared gross on the IT38 and a credit for the exit tax paid is then taken. I can't figure out where this credit goes on the form. There is a section for CGT, which seems to be mainly related to Gift Tax but none for Exit Tax.

Any help would be appreciated.
Click to expand...

When completing the Property section for Policy of Insurance, insert the gross amount as the market value of the property and then click Next. On the next screen, tick the box for the second question: Indicate if Capital Gains Tax credit applies to this property.

In the Credits Deductible tab, insert the exit tax amount into CGT Paid box.
 
trmartin said:
When completing the Property section for Policy of Insurance, insert the gross amount as the market value of the property and then click Next. On the next screen, tick the box for the second question: Indicate if Capital Gains Tax credit applies to this property.

In the Credits Deductible tab, insert the exit tax amount into CGT Paid box.
Click to expand...
That bit had me confused for a good while!! Thanks :D
 
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