Jack Wall (Kildare South, Labour)
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Question 73: To ask the Minister for Finance if, in the determination of a Capital Acquisitions Tax payment in relation to a High Court Probate decision in relation to a property, the value of the property is determined at the date of probate or the date of payment of the tax; and if he will make a statement on the matter. [33956/12]

Michael Noonan (Limerick City, Fine Gael)
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I am informed by the Revenue Commissioners that section 30 of the Capital Acquisitions Tax Consolidation Act 2003 (CATCA) sets down the rules for ascertaining the Valuation Date, which is the date on which property, taken as a gift or an inheritance, is to be valued for tax purposes, and also the date by reference to which inheritance tax becomes payable. The Valuation Date for the majority of inheritances is determined in accordance with section 30(4) CATCA. The general rule is that the Valuation Date of an inheritance is the earliest of the following:

· The earliest date on which a personal representative or trustee or the successor or any other person is entitled to retain the asset for the benefit of the successor or

· The date on which the asset is so retained, or

· The date of delivery, payment or other satisfaction or discharge of the asset to the successor.

For inheritances, the Valuation Date is normally the date of the grant of probate or grant of administration. This is because the date of grant is usually the earliest date a personal representative can ascertain the value of the residue or other benefit and also then retain that benefit for the successor. In complex estates involving, for example, litigation by beneficiaries, difficulties in ascertaining all of the estate assets or difficulties in ascertaining the exact next of kin, the Valuation Date would not normally arise until after the date of the grant. The Valuation Date for valuing the estate assets in such cases would only arise when all the litigation or difficulties had been finalized. Therefore, in the majority of estates, the value of property for inheritance tax purposes is determined at the date of the grant of probate or grant of administration.

Where the Valuation Date occurs in the period from 1 January to 31 August, the inheritance tax should be paid by 31 October in that year to avoid interest charges. Where the Valuation Date occurs in the period 1 September to 31 December, the inheritance tax should be paid by 31 October in the following year to avoid interest charges.