When is CAT payment due?

M

Madrox

Registered User
Messages
12
Originally posted this in over in the tax section but haven't had any response so was wondering if somebody here might be able to help.

Was just wondering if someone could tell me if I am right in my thinking, or if not, be able to give me a proper answer.

Basically there are two Wills dealing with one property. A Grant of Probate has been taken out by one executor, but due to a dispute over the property it will not be sold in the near future, so no inheritance has been passed over to the beneficiaries. Are the beneficiaries still expected to pay CAT by the October deadline?

Going by the Citizens Information website it would appear that they don't, as it says that in cases of inheritance the valuation date is normally the earliest of the dates when;
1) the inheritance can be set aside or given to the beneficiary.
2) it is actually retained for the benefit of the beneficiary.
3) it is transferred or paid over to the beneficiary.

But there are some bits of info online which have me questioning this.

If anybody has any experience of a similar situation, or can give a definitive answer I'd really appreciate it.
 
Nightmare stuff, is the executor proceeding as if the second will does not exist?

Looks like a legal battle.
 
Yeah, executor has approached a solicitor who said it would cost roughly €2,500 to begin legal proceedings. The tax bill would also come in at a couple of grand to each beneficiary, so if the tax must be paid by this October then it will be a matter of postponing the legal action until the bill is cleared.
 
Without giving to much details as the case could be easily identified.

Mother and father of the beneficiaries got separated, during the seperation they signed an agreement to become tenants in common, with equal shares of the property. One daughter remained in contact with the father following the separation so was left his share of the property. Mother left her share to other children. Daughter has approached siblings about selling the property several times but has been ignored as one of the other beneficiaries is residing there. She now feels that the only option is legal action.
 
I think you are confusing two issues here.

The will which probate was granted on recently is not in dispute - is it? So the executor can retain the property on behalf of the beneficiaries ie there is no impediment to him/her transferring the property into the names of the beneficiaries.

The fact that the owners of the property can't agree on whether to keep or sell the property is seperate to whether they have inherited their 1/2 share.

Is the daughter who ownes the 1/2 share disputing that the other siblings are entitled to their 1/2 share?

MF might clarify.
 
I concur with Joe_90, m'lud.

Property can be vested. CAT is due. The dispute is a separate matter.

mf
 
Yeah apologies for the confusion, they are two separate issues, and there is no dispute on the Will probate has been granted for, and the daughter isn't disputing the other Will.

Although to complicate things even more :D ...the father's Will states that the property should be sold, and the residue distributed to his daughter, would that have any effect on when CAT is due?
 
Just want to update in case anyone faces a similar situation in the future.

Popped into the tax office during the week and they said that tax was not due until the property had been sold.

Thanks to everyone who helped out.
 
I would double check that if I were you.

The relevant finance act is pretty clear on when inheritance tax is due and interest applies for late payment.
 
You must log in or register to reply here.
Back
Top