CGT on Sale of Assets during Administration

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peggy14

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RE CGT payable on Sale of Assets during Administration.
No Will so Estate spilt equally by the siblings.
Valuations were provided at DOD as part of Probate Process.
Sale of property (x2) now being considered to the beneficiaries or open market.
Property No 2 appears to have value significantly up on the DOD valuation (mainly due to exceptionally high demand / lack of stock & superb development potential).
Revenue site has mention of Relief of portion of CGT where 'Development Land is land (inc buildings) in ROI which has a higher market value than 'current use value' current use value is the value the land would have if it was not development land (where no development, other than a minor nature, could be carried out)'
Valuation at DOD was not really questioned sudden Covid death in difficult family circumstances and seems to reflect more of a current use value plus a bit more.

Advise required is a relief possible in such a senario or is CGT just to be paid on Sale Price Achieved less costs less DOD valuation @ 33%

I do have an appointment with a tax consultant on Monday but time is of the essence and level of CGT would be a factor on ability of beneficiaries to purchase out.

Thanks in advance.
 
The capital gain between the valuation on probate and the sale proceeds is taxable and the CGT is payable by the estate before the balance of the estate is distributed to the beneficiaries

It is hard to believe that the potential of the site was not known at the time of probate
 
jpd said:
It is hard to believe that the potential of the site was not known at the time of probate
Click to expand...
It was known and I am not sure why this was not reflected in the valuation at the time as value has not technically increased at all since DOD.
 
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ClubMan said:
Can the (seemingly inaccurate) valuation be corrected perhaps?

Correcting Form SA.2 or completing Form CA26

Correcting a Statement of Affairs (Probate) Form SA.2 or completing a Form CA26
www.revenue.ie www.revenue.ie
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Thank you for this. I will discuss with tax adviser on Monday.
Revenue does state that 'fluctuations in the property market are not considered to be material errors'.
In this case there is no fluctuations in the property market but serious fluctuations with regards to the Valuations provided for probate and today.
There was nothing to be gained by the family in respect of the lower valuation e.g. Fairdeal etc was never applied for.
I am happy to pay whatever CGT is applicable but if it can be lower it would mean the property may be able to be retained by a beneficiary.
Retention of the property would have been the deceased wishes but due to family circumstances a Will was not an option.
The expected Selling Price (due to no change in the property market) is probably up 400/500K more than probate valuation so defo an error here.
Yes, I know I should have been more up top of things but I had to withdraw from all communications for my own and my children's safety.
 
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