byrnekbyrne
Registered User
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- 12
Not such an unusual situation but that is a high tax bill, assuming person A is not a son/daughter, if person A cannot meet the tax then the property would usually be sold at which point person A could meet the liability.
What is the value of the house.
Revenue would look at a payment plan in such circumstances.
If the person paid €125k upfront, he or she could then rent-a-room and throw that €14k to Revenue for 5 years plus, say, another €950 a month which is a lot less than anyone else’s mortgage or rent for such a property.
If the person is unable or unwilling to do that, they should downsize.
In my experience, they won’t go longer than five years. I’ve also seen cases where they apply a pragmatic approach with older people and get a judgement mortgage.
However, this thread seems to be less about a real query and more about intellectual masturbation. I’m out.
Revenue are not putting a person on the street, once the property is sold and the inheritance tax paid, there is still enough left to purchase a new home - maybe not as big or as well situated as the current property, but that's a question of choice
This situation shouldn’t actually arise, if people with valuable assets actually care enough to undertake proper estate planning. But anyway...
If a person engages constructively and is willing to enter a non-statutory arrangement for payment of the tax liability over the shortest period that their means allows, AND consents to a judgement mortgage against the property, that’d be acceptable to Revenue.
Forcing sake of anyone’s PPR in this country is as difficult for Revenue as it is for any other creditor.
Revenue’s published Tax & Duty manual for CAT sets out some of the details around instalment arrangements (paragraph 14 of this: https://www.revenue.ie/en/tax-profe...cat-collector-general-district-guidelines.pdf). Gordon has mentioned 5 years as the limit above but that relates to statutory arrangements which are actually legislated for. Revenue has discretion to facilitate longer periods as necessary.
Who can’t afford €1,000 a month if it meant no rent or mortgage?
This potential deadbeat should pay his or her debts in a timely manner or be forced to sell the property.
With respect, I disagree, I was seeking advice as to whether Revenue in a rare circumstance such as above would consider a period longer than five years to allow somebody to clear their debts rather than be forced to sell a home that’s been in a family for a long period of time, and it appears there is a facility for non statutory payments which I’m sure individual would gladly take even if there is high interest rates charged and it went on for how many number of years to fully clear the debt, it’s not about hoodwinking rather foolish sentimentality to hang on to a family home, there wouldn’t be hoodwinking as a Revenue audit would give them a full picture of the persons repayment capacity, quite a bit different than a high profile builder hoodwinking nama, good luck to you.With respect, you weren’t seeking help. You wanted advice to enable someone to play ducks and drakes with Revenue...someone with plenty of assets. That’s no worse than a high profile builder hoodwinking NAMA.
I think that’s unfair based on what the poster asked. He’s looking for tax advise.With respect, you weren’t seeking help. You wanted advice to enable someone to play ducks and drakes with Revenue...someone with plenty of assets. That’s no worse than a high profile builder hoodwinking NAMA.
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