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Is CAT always calculated on the 'approximate value' on CA24 form?

  • 26-07-2014 05:14PM
    #1
    measurement
    Registered Users, Registered Users 2 Posts: 154 ✭✭


    Hi,
    Sorry if this duplicates anything. I searched but couldn't find an answer.

    Probate has been granted and the total value of the estate has been calculated, but there are 2 situations where that value might be slightly wrong:-
    1. Assets (e.g. pictures or furniture) don't realise the value stated for probate, when they are eventually sold.
    2. A debt is discovered after probate for a small amount (small in relation to the total) and needs to be paid out of estate before distribution.

    My question is, if either of these situations arises, are the beneficiaries still liable for CAT on the original 'approximate value' as stated for each beneficiary on the CA24, or can that figure change.
    (My hope is that because it says 'approximate' Revenue would be reasonable in accepting a slightly lower figure.)

    As an aside, it must be very difficult to get it right where a property has to be sold, and no action can be taken to dispose of it until after probate.


Comments

  • #2
    dbran
    Registered Users, Registered Users 2 Posts: 2,094 ✭✭✭dbran


    Hi

    If there is a material error in the CA24 then a corrective affidavit can be filed using form CA26.

    http://www.boards.ie/vbulletin/showthread.php?t=2057257022

    However fluctuations of market valuation of the property in the estate would not be considered a material error. So for the first situation you would stlll be required to pay the CAT on the original valuation. Any subsequent fall in value would be a capital loss and subject to CGT provisions and not CAT.

    The second situation would possibly be able to be corrected using a form CA26.

    dbran


  • #3
    measurement
    Registered Users, Registered Users 2 Posts: 154 ✭✭measurement


    dbran wrote: »
    Hi

    If there is a material error in the CA24 then a corrective affidavit can be filed using form CA26.

    http://www.boards.ie/vbulletin/showthread.php?t=2057257022

    However fluctuations of market valuation of the property in the estate would not be considered a material error. So for the first situation you would stlll be required to pay the CAT on the original valuation. Any subsequent fall in value would be a capital loss and subject to CGT provisions and not CAT.

    The second situation would possibly be able to be corrected using a form CA26.

    dbran

    Thanks for the explanation. It's what I expected (but not what I hoped) ;-))


  • #4
    mozattack
    Registered Users, Registered Users 2 Posts: 1,908 ✭✭✭mozattack


    The beneficiaries can CERTAINLY be assessed on a different value to the CA24 submission - the CA24 is just a current estimate whereas the beneficiaries will pay by reference to the valuation date which could be months/years after the CA24 was filed.

    One case I know too well and the VD is 5.5 years after the CA24 was filed.... !!!!


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