irish property law

HELENC1984_2

does anyone have ANY expertise in irish law, property and/probates??!

please move if this is in the wrong section but need some major advice!!!

googler

HELENC1984 wrote: »

does anyone have ANY expertise in irish law, property and/probates??!

please move if this is in the wrong section but need some major advice!!!

Consult an Irish solicitor? There must be one who gives free initial consultations.

tyllwyd

Sorry, I can't help you - but what I would say is that I work in legal publishing, and a year or so ago I worked on a book aimed at solicitors in Ireland that covered those topics. I think I can safely say it was the most baffling book I've ever worked on, and the one thing I realised is that Irish law in those areas is very different from the UK. I'd say you really need to get advice from an Irish solicitor, sorry!

googler

A quick google of "irish property law" generates what seem to be useful links, either to websites or books covering the subject....but if you need 'major' advice then consult someone qualified and experienced in the field, not a forum like this.

HELENC1984_2

cheers guys, the waffle on those websites is uber baffling though, so im going to ask the question anyways if anyone can help!!

Relative died and left some proprty to my father in the will. Father died in 2002, the relative died in sept 2010, what are the tax implications to me in terms of CGT/ inheritance tax?!!

thanks in advance

and thanks for your response so far!!!

xx

tyllwyd

First question has to be - where is the property (I assume Ireland?).

Are/were you/the relative/your father Irish citizens?
Are/were you/the relative/your father resident in Ireland for tax purposes?

HELENC1984_2

None of us are EIRE citizens, just the relative that passed away

and yes property is in Ireland!

Cheers tyllwyd

xx

tyllwyd

From:http://en.wikipedia.org/wiki/Taxation_in_the_Republic_of_Ireland

"Capital acquisitions tax (CAT)
Capital acquisitions tax is charged to the recipient of gifts or inheritances, at the rate of 25% above a tax-free threshold[66]. Gifts and inheritances are gratuitous benefits; the difference is that an inheritance is taken on death and a gift is taken other than on death[66].
The person providing the property is called the donor or disponer, or testator or deceased in the case of inheritance; the person receiving the property is called the beneficiary, donee or disponee, or the successor in the case of inheritance.
A gift is taken when a donee becomes beneficially entitled in possession to some property without paying full consideration for it[67]. Tax is payable within four months of the date of the gift; an interest charge applies to late payments[67].
Tax is generally charged on the property’s taxable value, which is computed as:
Market value
less liabilities costs and expenses payable out of the gift or inheritance
= incumbrance free value
less consideration paid by acquirer in money or money’s worth
= taxable value[67]
URL="http://forums.moneysavingexpert.com/w/index.php?title=Taxation_in_the_Republic_of_Ireland&action=edit&section=48"][COLOR=#0645ad]edit[/COLOR][/URL Taxable transfers

A disposition is taxable in Ireland if it is of property in Ireland, or if either the disponer or the beneficiary was resident or ordinarily resident in Ireland at the date of the disposition. Special rules apply for discretionary trusts[68].
URL="http://forums.moneysavingexpert.com/w/index.php?title=Taxation_in_the_Republic_of_Ireland&action=edit&section=49"][COLOR=#0645ad]edit[/COLOR][/URL Exemptions and reliefs

CAT can be reduced or eliminated altogether under a number of headings.
URL="http://forums.moneysavingexpert.com/w/index.php?title=Taxation_in_the_Republic_of_Ireland&action=edit&section=50"][COLOR=#0645ad]edit[/COLOR][/URL Exemption thresholds





For 2010, the group thresholds, indexed for inflation, are[69]:

• €414,799 (Group A) where the beneficiary’s relationship to the disponer is: son or daughter, minor child of a predeceased son or daughter. Child includes a foster child (since 6 December 2000) and an adopted child (since 30 March 2001).
• €41,481 (Group , where the beneficiary’s relationship to the disponer is: lineal ancestor (e.g. parent), lineal descendant (not within A; e.g. granddaughter), brother or sister, nephew or niece.
• €20,740 (Group C) where the beneficiary’s relationship to the disponer is: cousin or stranger.

For gifts and inheritances taken on or after 5 December 2001, only prior benefits received since 5 December 1991 from the same beneficiary within the same group threshold are aggregated with the current benefit in computing tax payable on the current benefit.
An inheritance, but not a gift, taken by a parent from his or her child is treated as group A, where it is an immediate interest (but not a life interest) in property[70]. In certain circumstances, the beneficiary may take the place of his/her deceased spouse for the purpose of determining the applicable group where that spouse died before the disponer and was a nearer relative to the disponer[68]."

Right, this is just a starting point and a huge disclaimer that it may be totally wrong! but it looks to me as if tax (CAT) will be due in Ireland since the property is situated in Ireland. It will be 25% of the taxable value above the threshold of 415 Euros. But having gone back and looked at it again, it is just as convoluted as I remembered, so this is just an educated guess!


BTW is your father's estate above the threshold for UK inheritance tax? Again, I'm not sure but I would have expected that there is a double taxation agreement between the UK and Ireland which means that you wouldn't have to pay the same tax twice.


Oh, and I should have said earlier - this sounds like a tax issue rather than a property issue - you should try posting on the cutting tax board, there might be someone who could help there.

HELENC1984_2

wow a million thank you's tyllwyd!!

i will post it on the tax board as well, but you have pretty much answered my question

cheers
:beer:

Cissi

HELENC1984 wrote: »

Relative died and left some proprty to my father in the will. Father died in 2002, the relative died in sept 2010, what are the tax implications to me in terms of CGT/ inheritance tax?!!

I'm really confused here and may have misunderstood something, but are you saying that your father had already been deceased for 8 years when the relative died? If so, then it doesn't sound straightforward to me who now actually inherits the property. I thought that unless the will specifies what should happen in this case then the asset in question passes to the other living heirs?

Were you named in the relative's will? Or was it specified that if your father died before the relative then the property was to be passed to your father's heirs? If not, then the bequest to your father may be invalid by the fact that he was already deceased. You may of course still be a direct heir of the relative who died in 2010 but that depends on the family relationship and on what else is in the will.

I think you do need to consult a solicitor in Ireland. Good luck!

tyllwyd

Cissi wrote: »

I'm really confused here and may have misunderstood something, but are you saying that your father had already been deceased for 8 years when the relative died?
...

Eeek, I'd missed that - I had it in my head that the relative died in 2002 and the father died in 2010. If it is the other way round, as Cissi posted, that sounds completely different. Are you sure you inherit the property at all? Or do you inherit direct from the relative under the terms of the relative's will?