Dáil Éireann Debate, Tuesday - 20 October 2015
248. Deputy Derek Nolan asked the Minister for Finance if the exemption level for inheritance tax will be applied from the date that the finalising probate is processed, as opposed to the date of the benefactor's death; and if he will make a statement on the matter. [36526/15]
View answerI am informed by the Revenue Commissioners that there are two important dates that are relevant for the taxation of an inheritance. These dates are used for different purposes and are mutually exclusive. Firstly, the date of death of a disponer is the date by reference to which the Group Thresholds and tax rates are determined. The Group Threshold is the value below which a gift or inheritance is not liable to tax in a given class of relationship such as parent to child. Therefore, whatever thresholds and rates are in force on this date apply for the purpose of taxing the value of an inheritance. These rules are based on statute and are strictly applied.
Secondly, the date on which probate or administration is granted is generally used as the 'valuation date'. This date has no effect whatever on the applicable Group Thresholds and tax rates. The valuation date is the date on which the market value of the assets/property comprising the inheritance is established. This market value is then compared to the relevant Group Threshold and the tax rate applied as appropriate on any excess of the market value over the threshold. This date also determines when any inheritance tax must be paid and a tax return must be submitted to Revenue.
