CGT on transfer of an asset

L

Lord Rossmore

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Johns uncle left him property in a will in 2015. For various reasons John only took ownership of the property in 2021. The property has increased in value by 100k since 2015. Is John now liable for CGT on the difference?
 
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Was any Capital Acquisitions Tax/Inheritance Tax liability at the time of inheritance (presumably 2015 if that's when the uncle died?) already dealt with?

Capital Acquisitions Tax

Capital Acquisitions Tax (CAT) is a tax on gifts and inheritances. You can get a certain amount of gifts and inheritances without paying CAT, depending on your relationship to the person you get them from..
www.citizensinformation.ie www.citizensinformation.ie

Gift and Inheritance Tax (Capital Acquisitions Tax – CAT)

This page gives a general overview on CAT implications on gifts and inheritence.
www.revenue.ie www.revenue.ie

Capital Acquisitions Tax (CAT) thresholds, rates and aggregation rules

This page outlines CAT thresholds, rates, and aggregation rules
www.revenue.ie www.revenue.ie
 
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Yes there is a CAT liability. Was just wondering about CGT and the potential situation of having to pay both
 
As already mentioned above, no CGT (on the difference between the disposal price and the value at inheritance time) until the asset is sold.
 
Can you explain what you mean by "He only took ownership of it in 2015"?
Normally, property passes to the beneficiary on the death of date or possibly probate
 
Be aware that the date that he took ownership may not be the relevant date for CAT valuation and eventual CGT calculation purposes. See the links that I posted earlier.
 
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T McGibney said:
Impossible to answer this question meaningfully given the scant information provided. The OP needs to establish the Valuation Date of their inheritance.
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How much information do you need?. Is CGT payable on an increase in property value from inheritance date? Answer = Yes on disposal
Hes not asking you to do his tax return
 
samfarrell said:
Is CGT payable on an increase in property value from inheritance date? Answer = Yes on disposal
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Actually that's incorrect.
As @T McGibney said it's the valuation date that matters here and which is clarified in the document that he linked (and probably in some of the links that I posted earlier).
8.2 Valuation date of an inheritance

In the case of property transferring from a deceased disponer, the valuation date is typically later than the date of the inheritance (date of death) and in most cases is the date of the grant of probate (or the date of the grant of administration for an intestacy). In certain circumstances, however, a benefit does not form part of the estate of the disponer but is acquired by the beneficiary immediately on the disponer’s death or on the ending of an intervening life interest.
Click to expand...
 
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