Possible new inheritance tax rates in budget 2025

[Sailorgirk]

If there are IH ceiling band changes in the Oct 2025 budget when are they likely to kick in?

My understanding is the date probate is through is the date any tax liability becomes liable on your inheritance.
But say in the instance of land where the beneficiary is allowed access to the lands before probate is through then will this date of access be recognised and taken by Revenue as the date/period any possible tax is due or is it still the date of probate regardless. How would revenue know if access was awarded earlier to the beneficiary?

The beneficiary in question is employing all sorts of tactics to delay probate so that it'll be after Xmas before it's through and it could result in less tax for them if new rates kick in on Jan 1st.

 

[T McGibney]

Doesn't the date of death determine the appropriate CAT rate and band, regardless of probate and valuation date(s)?

 

[Farma1]

My understanding is it is date of death which drives the inheritance tax rather than date of probate.

 

[Sailorgirk]

Thank you so much for your replies.. I'm confused now so it's date if death regardless.. Right then that makes a big difference

 

[Bobby2013]

Thank you so much for your replies.. I'm confused now so it's date if death regardless.. Right then that makes a big difference

Yes, inheritance is on date of death, revenue sets out rules, there are two periods to file and pay if 80% of threshold is reached then filing needs to be submitted.

 

[jpd]

It is more complicated than that

See https://www.revenue.ie/en/gains-gif...tain-benefits/what-is-the-valuation-date.aspx

 

[AAAContributor]

The beneficiary in question is employing all sorts of tactics to delay probate so that it'll be after Xmas before it's through and it could result in less tax for them if new rates kick in on Jan 1st.

See https://www.revenue.ie/en/gains-gif...tain-benefits/what-is-the-valuation-date.aspx

Per the link above from Revenue:

"The tax free group thresholds and rates of tax that apply when you receive an inheritance, are usually determined by the date of death, not the valuation date." (my emphasis in bold and underline)

Machinations and manoeuvres by the beneficiary to delay probate (in anticipation of changes to the rate of CAT in Budget 2025) will not affect the rate of CAT applicable to this particular inheritance.

If the rate of CAT is reduced to 25% in Budget 2025, a rate of CAT of 33% will apply to this particular inheritance. The beneficiary will not be able to benefit from any rate reduction.

 

[T McGibney]

It is more complicated than that

See https://www.revenue.ie/en/gains-gif...tain-benefits/what-is-the-valuation-date.aspx

In relation to the OPs specific query, it's not.

Please don't mislead them.

The valuation date does not affect the rate and thresholds applicable to an inheritance.

 

[jpd]

It might if the valuation date is after the budget and the thresholds are changed

 

[T McGibney]

It might if the valuation date is after the budget and the thresholds are changed

No, not without vanishingly-unlikely root-and-branch changes to CAT in the meantime.

 

[Sailorgirk]

Thank you all for your replies.. They're much appreciated and I got a very satisfactory answer.