capital gains and inheritance tax

K

kandi

Guest
My Brother died in Feb 2001 and left 6 of his sisters some land.
We have had some of this land rezoned for building And recently acquired planning permission for housing and are hoping to sell soon.
do we have to pay inheritance and capital gains tax and what proportion
We have gone to considerable expence to get planning.Would the the expences we have incurred be deducted from the sale before paying tax.
Thanks
 
Do the links on OASIS about (Gift Tax and Inheritance Tax) and more generally about and help at all? I suspect that any planning and related expenses incurred after your brother's death and the distribution of his estate would not be allowed for under the Inheritance Tax rules. On the other hand the will probably be allowed in relation to Capital Gains Tax if/when you sell on the site or property which is built. Did the estate go to probate and, if so, was it a DIY job or did a solicitor advise you?
 
Kandi,
This can be a complex and difficult area to navigate. I strongly suggest that you seek professional advice on how to proceed. Costly mistakes can easily be made or important details missed on a DIY job.

I'm not an accountant or taxation expert btw, I just think your best route is professional advice.

Bub.
 
Assuming probate has been taken out, it really depends on how much the land was valued at in the estate. Sometimes in these circumstances, the land may have been valued low in the estate, and now with the new zoning the value may have risen dramatically. In certain circumstances, a corrective affadavit may be filed with the revenue, depending on the timing, however it may not benefit you at all if you are well over the CAT threshold as you will either be paying CAT or CGT- both are 20%, so it doesnt matter much which you pay. AFAIK the cost of planning applications are not an allowable expense when calculating CGT, but most people just whack them into the computation and leave it to the Revenue to either allow or disallow.
 
[broken link removed].
Vanilla said:
AFAIK the cost of planning applications are not an allowable expense when calculating CGT, but most people just whack them into the computation and leave it to the Revenue to either allow or disallow.
Click to expand...

Apologies if I was mistaken earlier and mislead anybody - perhaps [broken link removed] sheds more light on allowable expenses?
 
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