Timing Matters: When to Value a Gift or Inheritance for Tax
The date a benefit is valued for CAT purposes determines both when the tax is due and how the thresholds apply. Here’s what you need to know.
Valuation Date Rules: The valuation date is typically the earliest of the following:
- The date the benefit is received or becomes available.
- The date the beneficiary takes possession or enjoyment of the gift/inheritance.
- The date the asset is transferred into the beneficiary’s name.
- The date of Probate.
Common Scenarios:
- Outright Gift: Date gift is made.
- Inheritance through Will: Often the date the estate is distributed or an asset is appointed to the beneficiary.
- Why It Matters:
- Determines CAT payment deadline:
- If the valuation date falls between 1 January and 31 August, you must pay by 31 October of that year.
- If it falls between 1 September and 31 December, you must pay by 31 October of the following year.
- Triggers any interest or surcharges for late payment.
Contact us today to arrange a consultation to discuss your CAT queries.
