friend and her sister inherit a house

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bungaro

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hi,
giving my friend a hand in relation to a house she and her sister inherited when her uncle passed away a few years ago. my friend is living in it and the plan is to give her sister half the value of it and then she signs her half over. she wasn't able to do this until know as a rights of way/access had to be sorted.
am i right in thinking she is in group b so this means she and her sister are entitled to €30,150 each tax free and the balance will be taxed at 33%. and is the value of the house when they inherited it or now as it would have gone up a fair bit in the couple of years she has been living in it?
thanks
 
The date that is used for CAT is known as the valuation date.

The valuation date is usually the date that probate is granted but can be earlier when the beneficiary takes possession of an asset.

So your sister may have a different valuation date to you. Was she living in the property prior to your uncles death? Does dwelling house exemption apply.

The transfer of the half share will be subject to Capital Gains tax either way so if your valuation date is deemed to be date of death then the increase will be subject to CGT rather than CAT.
 
So OP, an other important question, in addition to the occupancy question raised by Joe, is was title transferred from the uncles estate to the two girls before the right of way issue was sorted or did the executors of the estate sort it before seeking probate?
 
thanks for the replies guys. neither of them were living in the house when the uncle passed away so i'm assuming that means the dwelling exemption won't apply. as for the rights of way issue, my friend has been living in the house over two years now and its only in the past week that that has been sorted, this was the reason she couldnt get a mortgage to pay her sister for her share of the house.
would i be right in thinking too that her sister will get hit with the cgt/cat as she is getting a lump sum where as my friend won't as she is going to be living in the house and hasn't gotten a monetary sum as the inheritance??
 
if the value of half the house is more than 30,150 then both will pay tax on the balance over that.
Then the sale of the half by the sister will be subject to CGT as she acquired the asset from the uncle and from what you say value has gone up since he passed away.
Can you please answer the question I asked about when the executors of the estate transferred the house to the sisters as it has a bearing on the taxes due by whom and when, including possible penalties for non payment of any CAT, which has to be done online
 
my friend is abroad for a few days so as soon as she is back i will ask her about that branz. thanks again for your replies
 
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