CAT & CGT Valuation Date

B

bipped

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First time poster looking for information sorry if the questions have been answered before

How is the valuation date decided for a deceased fathers estate with 4 siblings to inherit?
CAT is ok as the amount is under the threshold.

Is the probate value just an estimate supplied by the auctioneer so the executor can finalise everything. Is the valuation date the date the sale of the house is finalised as that is the market value

Will CGT be due if the probate value is less than the final sold value.
 
Yes, if you sell the house for more than the probate value i.e. the value at the date of death, then the Executor will be liable to CGT.

Some people suppress the probate value thinking that it will save them CAT. But they will get caught by CGT in a rising market.

Brendan
 
Thank you for your reply.

So the market value for the valuation is also the date of death value and not the sold price as I thought. The two different types of tax related to the same event, (ie finalising the deceased's affairs and distributing the inheritance) are handled separately.

The tax due on the increased value of the house is CGT and that calculation uses the sold value less the value at date of death less any costs / expenses. This is the responsibility of the executor and if tax is due, the executor has to pay Revenue and file a tax return on behalf of the estate. When the executor finalises the estate, the beneficiaries are paid their inheritance.

Any tax due on the inheritance is CAT and that calculation uses the valuation date and the relevant thresholds. This is the responsibility of individual beneficiaries.
 
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