The valuation date is the date on which the market value of the property comprising the gift or inheritance is established.
In the case of a gift, the valuation date is normally the date of the gift.
In the case of an inheritance, the valuation date is normally the earliest of the following date
The valuation date will normally be the date of death in the following circumstances:
In the case of a gift, the valuation date is normally the date of the gift.
In the case of an inheritance, the valuation date is normally the earliest of the following date
- The date the inheritance can be set aside for or given to the beneficiary
- The date it is actually retained for the benefit of the beneficiary
- The date it is transferred or paid over to the beneficiary
The valuation date will normally be the date of death in the following circumstances:
- Gift made in contemplation of death (Donatio Mortis Causa)
- Where a power of revocation has not been exercised. This could arise where a person makes a gift of property but reserves the power to revoke, or take back, the gift. If the die and this power ceases, the recipient then becomes taxable as inheriting the benefit. If the beneficiary had free use of the benefit before this, they will be taxed as receiving a gift of the value of the use of the property.
Taxable Value
The gift or inheritance is valued as the market value at the time you become entitled to the use or benefit of it.
The value that is taxable is the market value minus the following deductions.
You can deduct any liabilities, costs and expenses that are properly payable. This would include debts that must, by law, be paid and that are payable out of the benefit or because of it. With an inheritance, these may be funeral expenses, the costs of administering the estate, or debts owed by the deceased. For a gift, they could include legal costs or stamp duty.
If you make a payment for the benefit or some other contribution in return for it, this may also be deducted. This is known as a 'consideration' and could be, for example, a part payment, an amount paid annually to the donor or other person, or a payment of debts of the donor.
If you do not receive full ownership but instead receive a benefit for a limited period, then a number of factors are taken into account to calculate the value. More information on the calculation of the value of a limited interest is explained on revenue.ie.
The value that is taxable is the market value minus the following deductions.
You can deduct any liabilities, costs and expenses that are properly payable. This would include debts that must, by law, be paid and that are payable out of the benefit or because of it. With an inheritance, these may be funeral expenses, the costs of administering the estate, or debts owed by the deceased. For a gift, they could include legal costs or stamp duty.
If you make a payment for the benefit or some other contribution in return for it, this may also be deducted. This is known as a 'consideration' and could be, for example, a part payment, an amount paid annually to the donor or other person, or a payment of debts of the donor.
If you do not receive full ownership but instead receive a benefit for a limited period, then a number of factors are taken into account to calculate the value. More information on the calculation of the value of a limited interest is explained on revenue.ie.