Top tips for Capital Acquisitions Tax on inheritance
Paying inheritance tax is something that many people experience when inheriting an asset from family or friends, are there ways we can minimize the tax bill? Planning is required. Let’s see some examples: Will I Face a Tax Bill if I Inherit my Sister’s House? I am 63 and living with my sister aged 73.
Will I Face a Tax Bill if I Inherit my Sister’s House? I am 63 and living with my sister aged 73. She owns the house and I have been paying rent each week for the last 10 years. She has told me she has made a will and that on her passing, I will get the house. What are the tax implications for me if I inherit the property? The tax arising on inheritances is Capital Acquisitions Tax (CAT). Amongst the rules with this tax is an exemption on the inheritance of a dwelling house. The exemption applies where the following conditions are satisfied: This exemption should apply to you as the house is your sister’s main home; you have lived there for more than three years; and you do not have an interest or share in any other house. Ready to get started? See what our financial planning experts can do for you.
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