Inheritance-tax timing can be confusing because more than one date matters. The date of the inheritance and the valuation date serve different purposes. They may coincide, but it is unsafe to assume that they always do.
The inheritance date is generally relevant to matters such as the applicable threshold. The valuation date helps determine the value to be assessed and the deadline for filing and paying Capital Acquisitions Tax. Establishing it can require more than reading the date on a death certificate.
Identify the valuation date
For an inheritance, the valuation date depends on when the person entitled to retain or receive the property can do so under the relevant rules. Estate administration, an earlier interest or other circumstances can affect that timing.
Do not assume that the date probate is granted, the day money reaches your bank or the date of death automatically answers the question in every case. Ask the executor and adviser for the basis used.
Work out the filing deadline
The ordinary CAT pay-and-file cycle uses 31 October. Benefits with a valuation date from 1 September in one year to 31 August in the following year generally fall into the latter year's deadline. Check Revenue's current instructions for any applicable online extension and its conditions.
An extension should not be assumed merely because a return is being prepared online. Late filing and late payment can have different consequences.
A return may be needed without a tax bill
The normal reporting test can require an IT38 return once aggregated taxable benefits exceed 80% of the relevant group threshold. Other requirements also apply, including when Agricultural Relief or Business Relief is claimed.
Keep records of earlier benefits, valuations, allowable deductions and supporting relief evidence. If an asset has no ready market price, an appropriate professional valuation may be necessary.
Where there is not enough cash to pay a liability, seek advice before the deadline. Waiting for an eventual sale without checking the available arrangements can add avoidable costs.
The practical starting point is a small timeline showing the date of death, the relevant benefit, the proposed valuation date and the filing deadline. Have that timeline checked where the estate is complex. Clear dates make it much easier to organise the rest of the return responsibly.
Sources and further reading
General information, not advice on your individual circumstances. Laws and tax rules can change; check the linked official guidance and obtain professional advice where needed.