Yet another inheritance tax question...

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Thirsty

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Property valued by local estate agent early 2014 (for date of death) at 450k; property structurally sound but in need of renovation and redecoration.

CA24 used the given valuation from EA.

Grant of probate completed in early 2015.

Inheritance tax therefore payable by 31st Oct 2015.

So far, so good.

A search of the Property Price Reg shows 6 houses sold during 2014 in the same estate, none of which reached the probate valuation. Averaging out the sale prices comes to €50k less than the valuation from EA.

So here's the question...

Is the beneficiary obliged to pay inheritance tax based on CA24 or can they make a case that the property was overvalued at that time by EA, using Property Price Reg information?

(Please don't go into Groups/Thresholds... have all that info already, thanks! :) )

edit: used wrong acronym, now corrected.
 
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The CA26 Corrective Affidavit is the only way I can see how you can go about changing the date of Death valuation by making a case of material error. The Corrective Affidavit is not concerned with fluctuating house values but if you can make the case that a material error was made at the date of death valuation and was not matched with the current valuations at the time and if you can back that up with documents.
http://www.revenue.ie/en/tax/cat/leaflets/ca26-corrective-affidavit.html
 
Would Property Price Reg count as documents?

Edited to add:

I don't think corrective affidavit would be the right thing to do here

It says
"Fluctuations in the property market are not considered to be material errors."

Edited again:
The Guide to IT38/39 says

"Calculate Taxable Value
The taxable value will be calculated for you by ROS based on the information you have supplied in your return."

So basically I supply the figures?
 
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I think your right that since you supplied the figures then that's that. If however you later are selling the property and it is subject to CGT you at least have the first 50K already covered before the balance gets taxed.:(
 
When I say.."I supply the figures" what I meant was when I fill in the IT38 form, I write in the valuation and the tax is calculated from that. It isn't pre - printed by revenue.

So I could make a case re the valuation?
 
Thirsty, you can have the property valued at the date of the grant of probate and use that for your CAT return. That is the date on which you become beneficially entitled to real property usually, unless you have gone into occupation of the property since date of death.
 
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