Inherited Land

Lennyzip

Hi , just looking for some info . I've been left a plot of land following the passing of my father . Probate is nearing completion & registration of the land will be sorted out soon . Am I liable for inheritance tax , if so how exactly is it calculated ??

Cheers in adanvace for any responses .

Ken.

You can receive up to €225,000 from a parent before tax kicks in.

http://www.citizensinformation.ie/en/money_and_tax/tax/capital_taxes/capital_acquisitions_tax.html

Group A applies where the beneficiary, the person receiving the benefit, is a child of the person giving it. This includes a stepchild or an adopted child.

It can also include a foster child if the foster child resided with and was under the care of the disponer and they provided the care, at their expense, for a period or periods totalling at least 5 years before the foster child reached the age of 18. This minimum period does not apply in the case of an inheritance taken on the date of death of the disponer. In this case the Group A threshold will apply provided that the foster child had been placed in the care of the disponer prior to that date.

Group A also applies to parents who take an inheritance from their child but only where the parent takes full and complete ownership of the inheritance. If a parent receives an inheritance where he or she does not have full and complete ownership of the benefit, or if a parent receives a gift, then Group B applies.

If a parent inherits from their child, and have full and complete ownership of the inheritance it is exempt from tax if, in the previous five years, the child took an inheritance or gift from either parent and it was not exempt from Capital Acquisitions Tax. In this case, no tax needs to be paid even if the inheritance from the child is over the threshold.

Group B applies where the beneficiary is the:

Parent - see also Group A above
Grandparent
Grandchild or great-grandchild - see below
Brother or sister
Nephew or niece of the giver - see below

If a grandchild is a minor (under 18 years of age) and takes a gift or inheritance from his or her grandparent Group A may apply if the grandchild's parent is deceased.

Group A may apply to a nephew or niece if he or she has worked in the business of the person giving the benefit for the previous five years and meets the following criteria:

The nephew or niece must be a blood relation rather than a nephew or niece-in-law
The gift or inheritance consists of property used in connection with the business, including farming, or of shares in the company.
If the gift or inheritance consists of property then the nephew or niece must work more than 24 hours a week for the disponer at a place where the business is carried on, or for the company if the gift or inheritance is shares. But if the business is carried on exclusively by the disponer, their spouse and the nephew or niece then the requirement is that the nephew or niece work more than 15 hours a week.
The relief does not apply if the benefit is taken under a discretionary trust.

Group C applies to any relationship not included in Group A or Group B.

If you receive a benefit from a relation of your deceased spouse or civil partner, you can be assessed with the same group as your spouse or civil partner would be if they were receiving the benefit from their relation. For example, if you receive a benefit from the father of your spouse or civil partner, the group threshold would be Group C. But if you receive a benefit from the father of your spouse or civil partner and your spouse or civil partner is deceased, then the group threshold that applies to you would be the same as for a child receiving a benefit from a parent, Group A.

CAT thresholds after 5 December 2012

Group A: €225,000 Applies where the beneficiary is a child (including adopted child, step-child and certain foster children) or minor child of a deceased child of the disponer. Parents also fall within this threshold where they take an inheritance of an absolute interest from a child.

murphaph

Not forgetting that the date of death is the date that determines what thresholds are in force. The thresholds have been reduced quite drastically so if your father died a few years ago then the threshold is higher.

Lennyzip

murphaph wrote: »

Not forgetting that the date of death is the date that determines what thresholds are in force. The thresholds have been reduced quite drastically so if your father died a few years ago then the threshold is higher.

When would I pay the inheritance tax ? Would it be when / if I sell the land or straight away once it's signed into my name ??

Ken.

It becomes due when the land becomes yours. But ring revenue and explain your trying to sell the land and will pay then. They're normally fairly accommodating as long as your up front and don't take the pee. If you don't have the money up front that is.

Lennyzip

ken wrote: »

It becomes due when the land becomes yours. But ring revenue and explain your trying to sell the land and will pay then. They're normally fairly accommodating as long as your up front and don't take the pee. If you don't have the money up front that is.

What about this though

"
Gifts and inheritances can be received tax-free up to a certain amount. The tax-free amount, or threshold, varies depending on your relationship to the person giving the benefit. There are three different categories or groups. Each has a threshold that applies to the total benefits you have received in that category since 5 December 1991.
Group A applies where the beneficiary, the person receiving the benefit, is a child of the person giving it. This includes a stepchild or an adopted child. "

I am the child here so would I be excempt from this here or is that just with a gift instead of land

juke

Lennyzip wrote: »

What about this though

"
Gifts and inheritances can be received tax-free up to a certain amount. The tax-free amount, or threshold, varies depending on your relationship to the person giving the benefit. There are three different categories or groups. Each has a threshold that applies to the total benefits you have received in that category since 5 December 1991.
Group A applies where the beneficiary, the person receiving the benefit, is a child of the person giving it. This includes a stepchild or an adopted child. "

I am the child here so would I be excempt from this here or is that just with a gift instead of land

ken already answered this for you:

ken wrote: »

You can receive up to €225,000 from a parent before tax kicks in.

In you lifetime, you can receive a gift or inherit up to €225,000.00 from a parent before you are liable for tax (based on a date of gift/inheritance on or after 6/12/2012). If you have no prior gifts/inheritances from your parents and the site is worth below this value, then you most likely are not liable for Capital Acquisitions Tax ('inheritance tax').

Lennyzip

juke wrote: »

ken already answered this for you:



In you lifetime, you can receive a gift or inherit up to €225,000.00 from a parent before you are liable for tax (based on a date of gift/inheritance on or after 6/12/2012). If you have no prior gifts/inheritances from your parents and the site is worth below this value, then you most likely are not liable for Capital Acquisitions Tax ('inheritance tax').

Thanks , yes I know ken answered it but wasn't sure if there was a difference between a gift and inherited land for the threshold value . I've no idea how much this land is worth , it's not a big plot . I've no idea if the monetary value of the land . Will revenue request me to get it valued now once it's put into my name . Apologies if I'm asking questions that have already been answered , I just can't find a straight answer on the revenue or citizens advice websites .

juke

No intention to criticize, sorry if it came across that way.

The site would have been valued before the application for Probate was lodged (part of the process), this information is submitted to the Revenue Commissioners by the Probate office.

Talk to the executor - they should be able to give you the valuation.

If the executor instructed a solicitor to take out the Grant of Probate the solicitor will (should) advise you about the value, and any possible tax liability.

Lennyzip

juke wrote: »

No intention to criticize, sorry if it came across that way.

The site would have been valued before the application for Probate was lodged (part of the process), this information is submitted to the Revenue Commissioners by the Probate office.

Talk to the executor - they should be able to give you the valuation.

If the executor instructed a solicitor to take out the Grant of Probate the solicitor will (should) advise you about the value, and any possible tax liability.

Brilliant , thanks a lot for the info , you've helped me out immensely !