will proceeds - tax implications

W

Westgolf

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hi all

I expect to receive a payment shortly as a beneficiary of a will. have calculated that will have to pay approx 95k to revenue which I accept.
My query is are there any avenues / schemes such as s23 and the like that I should be looking at to try and maximise any tax savings possible.

I am not trying to avoid the payment of the tax,merely trying to be as tax-effecient as possible.

all suggestions welcomed

westgolf
 
Assuming you have calculated the liability correctly then there is little or nothing you can do.

Some schemes such as the Radisson the scheme are tailored to give the client relief against all income. However, I'm not aware of any scheme that provides for CAT relief. Maybe you should look at maximising your Income Tax relief and offset against the CAT liability. Look at Film relief, it'll generate about €2,000 relief for nothing. Then you have a pension contribution, I don't know what age you are but this is more effective as you get older in life. Remember while you are paying out on a pension fund now you'll be entitled to a 25% tax-free lump sum out of the fund on maturity. I think FA 2006 put some cap on this... Maybe €1.5 Million?

Then you have BES relief, this is highly volatile at the moment. I wouldn't invest in anything BES related unless it's asset backed, look at something with a 10%-15% yield but with good asset backing.

Then you have a Deed of Covenant, if you are giving money to someone 65 years or over or and incapacitated individual then you will get tax relief on it. Again this is a small saving as a Deed of Covenant is capped at 5% of your annual income.

€95,000 of a CAT liability is big, that's giving you a gain of €475,000 after you've used the appropriate threshold. Are you entitled to dwelling house relief or anything like this? Is the will set in stone?
 
If you are to be better off to the tune of near half a million, do you not think that it better to contact an Accountant to simplify matters. There are virtually no ways in reducing CAT but you really should splash out and pay a professional for expert opinion.
 
Agree 100% with Mercman. plus with that type of money I'd be getting a tax adviser to do the computation as well. If there was an error in your calculation then you'd be liable to major penalties and interest charges.

In my opinion...Seek help!!
 
mercman said:
If you are to be better off to the tune of near half a million, do you not think that it better to contact an Accountant to simplify matters. There are virtually no ways in reducing CAT but you really should splash out and pay a professional for expert opinion.
Click to expand...

Mercman,will definitely be seeking professional advice on the matter but was posting the query so as to get another angle on things as there is a vast pool of knowledge within the walls of AAM

Iceman thank you for your detailed response, two queries though,

A. when you say set in stone what do you mean ?
B. what is the raddisson scheme ?

re pension contribution I'm 41 and pensions are one area to be looked at definitely , will also research film relief as suggested, have to say I am kinda wary of BES unless it was strongly asset backed and then I would only consider specific areas.I'm a purchasing manager within the food sector so I would lean towards BES schemes with some connections to that sector, but warily as stated.

Westgolf
 
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