Jack Wall
Question:201. Deputy Jack Wall asked the Minister for Finance the mechanism available to a person regarding the payment of inheritance tax on a bequeathed house; and if he will make a statement on the matter. [27689/13]
View answerTuesday, 11 June 2013
Questions (201)
Written answers
Capital Acquisitions Tax (CAT) applies to both gifts and inheritances. I am informed by the Revenue Commissioners that CAT is a self assessment tax ordinarily payable electronically through Revenue’s Online System (ROS). Where the valuation date for an inheritance is in the period 1 January to 31 August, a CAT return and payment of CAT due must be made by 31 October in that year. Where the valuation date for an inheritance arises between 1 September and 31 December, a CAT return and payment of CAT due must be made by 31 October in the following year.
However, a person may opt to pay CAT that arises on gifts or inheritances of real property (e.g. lands and buildings) by monthly instalments over a maximum period of 5 years. In such cases interest is payable at the rate of 8% per annum on the outstanding CAT in accordance with section 51 of the Capital Acquisitions Tax Act 2003 and is payable with each instalment.
Where the property in the gift or inheritance is sold before the full liability is paid any unpaid instalments must then be paid on completion of the sale.
Where, in exceptional circumstances, it is shown to the satisfaction of the Revenue Commissioners that payment of CAT cannot be made when due without excessive hardship, they may allow payment to be postponed for such period, to such extent and on such terms as they think fit (this may include payment of CAT by non-statutory instalments on a concessionary basis or the waiver of interest). The Revenue Commissioners will consider each such case on its merits, taking into account both the financial circumstances of the beneficiary and the type of gift or inheritance involved.
A beneficiary experiencing difficulty in paying CAT should contact his or her local Revenue office as early as possible to outline their circumstances and to explore the options available on paying the tax, otherwise the CAT will fall due for payment in accordance with the normal timeframe outlined above.