Staged Payments of Inheritance Tax

[midland muck]

Hi all,
I recently inherited land with house valued at €194k and €14k in cash. This leaves me with a tax liability of approx. €35k when all expences and tresholds are taken into account.

The land is very poor and is suitable for forestry only and the house is in need of refurbishment. I don't want to dispose of the assets but the tax liability is a problem. Don't get me wrong I know I'm very fortunate to gain this gift, it's just that I don't have this amount of money available to pay revenue.

Therefore I'm wondering if revenue will accept staged payments. I can pay €10k of the tax liability now and probably pay off the rest over the next 18 mnths when I have access to other investments. Does anyone know if revenue are flexible in this regard or would they impose interest penalties?
Any comments greatly appreciated.

 

[Ham Slicer]

You can pay by installments over a period of five years. One payment annually.

First payment due one yr after valuation date (probably date of probate but may be other date). So you have a year to make first payment and if you have funds earlier you just break agreement and pay up. Interest will obvioulsy be charged.

You should call Revenue in Dublin Castle and ask for CAT section - they are normally very helpful.

Hope this helps

 

[Ravima]

what is the land worth?
You may be entitled to 'agricultural relief'. If 80% of all your earthly possessions/assets are agricultural land, then you qualify for this. it might bring down your taxes.