Will there be CGT due ?

When does Revenue need to be told that residual land has been sold and do they need to know individual field values ?

Situation involves 4 fields in the one folio that fell into the residual pot and were valued for probate purposes . This folio has more land attached to it but only these fields fell into the residue. So two of the fields have been sold for more than the estate valuation, and two were sold at less than the estate valuation after being on the open market for quite some time. Overall the total sale value of all fields comes in a bit less than the estate valuation as it balanced out with the 2 fields that went over.

So, can the total sales figure be reported to Revenue as the one amount as all fields are the same folio number or does each field have to be itemised which would I presume result in CGT ? Does revenue allow any allowances off CGT like selling expenses etc ?

When would revenue need to be informed as currently all they're asking for is PAYE return of the deceased . The proceeds of the fields haven't been received in yet from the buyers . Is this all complicated territory as ideally I would like to save the beneficiaries money but also I want to do the right thing too. Thank you

I can’t definitively answer your question as to whether they would look at the four fields separately but I would suspect it depends how it appears on the probate application form.

If it appears as a single ‘lot’ valued at X and the ‘lot’ ultimately sells for X + Y, then you would be liable for CGT on Y.

I know from my own experience that expenses related to the sale of a property itself can be offset against a CGT liability. These would include estate agents fees, solicitors fees, BER assessment fees and any other expenses you may have incurred to protect the property before it could be disposed of. Your solicitor will explain all this before the sale closes

Thank you Salvadore - Two of the fields went in total 8k over estate valuation and the other two went 7k in total under valuation so maybe Revenue would offset the losses ?. On the probate application there seems just to be one overall value listing the estate valuation of the farm house and two folio's which is what the estate consists of. . No individual field plans or valuation are listed. In order to get the valuation of these fields we had to take the estate valuation of all the lands in that complete folio to get the price per acre and then times that price with the each individual fields acreage. The estate agent valued the house and then the lands by folio to give full estate valuation.

In that case, it would seem that your CGT liability would be on the difference.i.e. on the 1000 “profit” but your conveyancing solicitor should be able to tell you.

You can deduct the costs of selling (as I outlined above) from the 1000 and you would be liable for 33% of the remaining balance. So it’s unlikely there would be any CGT liability at all.

Ultimately, however, it is your responsibility to determine whether or not you have any liability and to ensure that payment is made to Revenue. Your solicitor can advise but is not obliged to make deductions for submission to Revenue.

Your reply is much appreciated Salvadore.. Thank you

Sailorgirk said:

On the probate application there seems just to be one overall value listing the estate valuation of the farm house and two folio's which is what the estate consists of

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Just looking at it again, if the probate application had one entry to include the fields and the farm house, CGT would probably be assessed against the total amount ultimately achieved for all component parts.

So in addition to the fields, you would also need to factor in the amount you got for the farm house relative to the valuation contained on the probate application.