When should an inheritance be declared on Form 11

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RichieRuin

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My wife's uncle died last summer and left her some land in his will. She got a letter in January from the solicitor saying where it is and approximately how much it's worth (€100k). Other than that, she hasn't heard anything and has no idea when she'll actually get possession of the land. Soon as she does, she'll have to sell it to pay the tax that will be due.

We are filling in our joint Form 11 for 2019 at the moment and in the section on Capital Acquisitions there is a question about inheritance that is worrying us.

The question is "If you received a gift or an inheritance in 2019, tick in the box"

By any lay person's interpretation, she didn't actually receive the inheritance in 2019 but the form has a note underneath that says "an inheritance is generally treated as having been received on the date of death of a person" and another note saying the same thing but omitting the word "generally".

What's worrying us is, if we tick the box to say my wife received an inheritance, will we then be liable to pay the relevant tax immediately? I know Revenue are generally fair and reasonable so I can't imagine them demanding tax for something she hasn't yet received and doesn't even know for sure how much it's worth, but I wanted to check.

The reason we're filing the return this early is to claim small reliefs for medical expenses and college fees. It would defeat the purpose if we landed ourselves with a big bill instead. If there's a chance of that happening, we'd be better off not filing it until closer to the deadline when hopefully we'd know more about what's happening with the inheritance.

Advice welcome - thanks!
 
See the citizens info website or Revenue.ie - the valuation date seems to determine when you have to pay. Your wife as a niece can claim 32500 tax free and also any legal fees or stamp duty incurred.

From website:
Taxable gifts or inheritances with a valuation date on or after 14 June 2010 have a fixed CAT pay and file date. All gifts and inheritances with a valuation date in the 12-month period ending on the 31 August must be paid and filed by 31 October.
This means, if the valuation date is between 1 January and 31 August, you must complete the tax return and pay the tax on or before 31 October in that year. If the valuation date is between 1 September and 31 December, you must complete the tax return and pay the tax on or before 31 October in the following year. If you pay and file your tax return online using the Revenue Online Service (ROS), you may be able to file your return slightly later.
 
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Feemar5’s post is a little strange; the €3,000 relates only to gifts and there wouldn’t be any stamp duty.

To answer your question, no, you don’t have to include it on your Form 11, so plough on and claim your refunds.

If the inheritance comes through this year, it should be mentioned on your Form 11 for 2020 but the IT38 Capital Acquisitions Tax return is a separate item, and its timing is as set out in Feemar5’s post.
 
Thanks for the replies folks. On further investigation, the valuation date for an inheritance is the earliest of these dates:
  • the date the executor or administrator can receive the inheritance to give it to you
  • the date the executor or administrator actually receives the inheritance to give it to you
  • the date the executor or administrator gives the inheritance to you.
The valuation date for my wife's inheritance hasn't happened yet so, taking this in conjunction with what Feemar5 says, we are in the clear in terms of our 2019 tax return. Still though, it's very confusing that the Form 11 question is based on the date of death whereas the valuation date -- and consequently, the tax liability -- is based, much more realistically, on when the beneficiary gains access to the inheritance. I really don't see the point in telling Revenue you've inherited something when you're not close to receiving it, don't know the value of it, and aren't at that time liable to pay tax on it.
 
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A follow on question from this
From form 11 "
Capital Acquisitions
If you received a gift or an inheritance in 2021, tick in the box"

However it doesn't seem to ask for any other information, how much was the inheritance ? from whom ? type and value of asset ?

Where do I declare this information and the tax due if any. I can't find any panel for 2021 form 11 to enter this information?
 
You don't declare the gift/inheritence on Form 11.

You use form IT38 to declare these
 
Thanks for that, I found that out later, however on the citizens information site it says you only need to declare your inheritance if it is above 80% of the threshold value. However if you are inheriting from a parent the threshold is 320K, therefore does that mean that even if you inherit an asset worth 250K from a parent you don't have to declare it?
 
The instruction is quite clear - a declaration is necessary only if the value of your inheritence is 80% or more of the relevant threshold

Remember, this is the cumulative value of your inheritences since Dec 1991

Also, remember that the executor or adminstrator of the estate will have filed a return with the value of the estate and with details of the beneficiaries
 
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