Being charged excessive CAT

L

legal33

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Hi

I am due to inherit about €5,000 from my uncle. I have already reached my CAT Category B threshold so I will pay CAT @33% on the full €5,000. There is no problem there. The problem is that the solicitor overestimated the value of the property at date of death and as a result informed the Revenue that I will receive an inheritance of €20,000. The Revenue are now looking for me to pay inheritance tax of €6,666 by October 2019 even though I will only receive about €5,000 in total which I may not even receive until after October as the property is still on the market.

What steps do I need to take to ensure I only pay tax on the money I receive?

Thank you
 
I would advise that you employ an accountant to deal with this. It wont be too costly. The accountant will have to address the point of the overvaluing of the property by the solicitor.
Does the Will actually specify a figure or is it a certain share of the property that has been bequeathed?
If the property does sell higher than you submit and you are on a percentage share then Revenue could still have a demand
 
You don't need representation, advise Revenue in writing and supply whatever supporting documentation you can to underpin your actual position.

You certainly will not have a liability until after the date of receipt of your inheritance.
 
Have a look at: [broken link removed]

What happens if the property is subsequently sold for a lower amount than the value in the probate valuation date? The relevant valuation date for CGT purposes is the date of death value being the value to be inserted in the Revenue Affidavit filed with the probate papers. A subsequent sale at a lower amount will not entitle the beneficiary to reclaim inheritance tax paid unless a compelling case can be put to the revenue that there was an error in the valuation submitted. Revenue will probably require an explanation for the error from the original valuer.
 
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