Inheritance Tax

Valuation Date

The valuation date is important in a number of contexts with gift and inheritance tax. The concept can be ambiguous particularly in the case of inheritances. It is generally clearer in the case of gifts. The valuation date of a gift is generally the date of the transfer of assets. … Read the rest

Enforcement

The Revenue have the usual methods and means of enforcement available for collection of inheritance tax. There is a surcharge on a person accountable for CAT who undervalues an asset Where the value is less than 60% of the value later ascertained. … Read the rest

Double Taxation

Unilateral Relief Unilateral relief may be granted where an inheritance or gift is subject to Irish CAT and is also subject to a foreign capital tax equivalent such as estate duty, inheritance tax or capital transfer tax. … Read the rest

Discretionary Trust Tax

Discretionary Trust Where assets are subject to a discretionary trust as defined, there is a once-off 6 percent charge and an annual charge after that. Tax applied on the date when assets become subject to a discretionary tax [in the sense defined) at the date of death of the person creating the will/trust or when, if later, that date on which there are no so-called principal objects over the age of 21.… Read the rest

CAT Reliefs

There are a number of CAT reliefs. This section looks at two major reliefs namely that applicable to agricultural property and that applicable to business property. Where reliefs are available they have the effect of reducing the rate of CAT to an effective rate of 3.3 percent rate. … Read the rest

CAT Rates

Finance Act 2011 FA Act 2011 reduced the tax-free thresholds. It reduced the Group A threshold to €332,084, the Group B threshold to €33,208; and the the Group C threshold to €16,604. The filing and payment date in respect of benefits of the period, 1 January to 31 August was amended from 31 October to 30 September. … Read the rest

CAT Exemptions

Exemptions: There is n annual exemption of €3,000 for gifts taken by any recipient from any disponer in any year. It applies to each calendar year. The relief is available as an exemption where the amount of the gift exceeds €3,000. … Read the rest

Calculation of Tax

Calculation of Capital Acquisitions Tax Capital Acquisitions Tax whether gift or inheritance tax is paid on the taxable value of the gift or inheritance. The taxable value is the market value reduced by deductible costs liabilities and expenses and by consideration paid in money or money’s worth.… Read the rest

Business Relief

Business relief has the effect of reducing the value of the certain qualifying trading business assets by 90 percent for CAT purposes. The effect of this 90 percent reduction is that a significant amount of property could qualify for exemption from CAT. … Read the rest

Basic Principles

Gifts and Inheritances A gift arises where in consequence of any disposition (transfer of an asset), a person becomes beneficially entitled in possession, otherwise on death to any benefit other than for full consideration in money or monies worth paid by that person.… Read the rest