Personal, Estate and Trust Tax Compliance
The different tax filing a payment dates and obligations for taxpayers can seem like a minefield. Whether you have an obligation to file an Income Tax return, Capital Gains Tax return or Capital Acquisition Tax return, we can help.
E.G. if you have any sources of non-PAYE income, sold/gifted or intend to sell/gift investments or other assets, have received a gift or an inheritance or have been appointed as an Executor of an Estate or Trustee of a Trust and we can determine and manage your tax filing and payment obligations.
At PKF O’Connor, Leddy & Holmes our tax compliance team can manage your personal tax compliance obligations by providing the following services:
- Registering you with Revenue for Income Tax (self-assessment)/Capital Gains Tax/Capital Acquisitions Tax.
- Advising you well in advance of when your tax return and any associated tax payment is due to Revenue.
- When preparing your tax return, discussing your tax position with you to ensure all available tax reliefs and deductions are claimed
Our tax team can assist you with :
1. Income Tax – Self-assessment
Who must register for Income Tax self-assessment?
You are generally required to register for Income Tax self-assessment with Revenue if:
- you are self-employed (sole trade or partnership)
- your only or main source of income is one or more of the following:
- rental income
- investment income
- foreign income including foreign pensions
- maintenance payments
- profit from share options or share incentives.
- Trusts in connection with their Income
- Estates may have to file tax returns depending on the particular circumstances
What are the Income Tax – Self Assessment ‘Pay and File’ Dates?
By 31st October you must:
- Pay your preliminary tax for that year (i.e. payment of income tax on account for the current year). This can be based on an estimate of your current year’s tax liability or 100% of your previous year’s tax liability or 105% of your tax liability for the pre-preceding year. This last option only applies if you pay your preliminary tax by direct debit and your tax-liability for the pre-preceding tax year was not ‘nil’.
- File your tax return and self-assessment for the previous tax year.
- Pay any balance of tax due for the previous year.
When you pay and file through the Revenue Online Service (ROS), the 31 October deadline is extended to mid-November (the date which is announced by Revenue each year)
To avoid interest charges and penalties, you must file your tax return by the correct due date.
2. Capital Gains Tax
When can a Capital Gains Tax (CGT) liability arise?
A CGT liability could arise if you sell, gift or exchange gift an asset which include:
- land (including development land)
- buildings (houses, apartments, or commercial property)
- shares in companies (Irish-resident or non-resident)
- assets that have no physical form such as goodwill, patents and copyright
- assets of a trade
CGT ‘pay and file’ dates
The dates you pay and file CGT are based on the date you sold or gifted an asset.
Your payment for CGT is due before you file your tax return for the disposal. For disposals made between:
- 1 January and 30 November (the initial period), you must pay CGT by 15 December of the same year.
- 1 December and 31 December (the later period), you must pay CGT by 31 January of the next year.
For disposals made under a written contract, the time of disposal is usually the date of the contract, unless it is a conditional contract.
You must file the tax return reflecting the disposal by 31 October in the year after the date of disposal.
A late CGT payment will incur an interest charge. A late return will incur a penalty.
3. Capital Acquisitions Tax
What is Capital Acquisitions Tax?
CAT is a tax on gifts and inheritances. You may receive gifts and inheritances up to a set value over your lifetime before having to pay CAT. Once due, it is charged at the current rate of 33% (valid from 6 December 2012).
Gifts become inheritances if the person dies within two years of giving the gift.
When are you not liable to CAT?
You do not pay CAT on a gift or inheritance if:
- it is given to you by your spouse or civil partner,
- the total taxable gift/inheritance is below that group threshold amount (when it’s value is added to previous gifts and inheritances in the same group from 5th December 1991).
- The inheritance qualifies for exemption from CAT, e.g. dwelling house exemption.
You do not pay CAT on a gift with a value of €3,000 or less from any one person in any one year.
When must you file a self-assessment CAT return
You are required to make a Self-Assessment Capital Acquisitions Tax (CAT) return, where you receive benefits of at least 80% of the relevant group threshold.
You may also be obliged to file a CAT return when claiming certain CAT exemptions (e.g. Dwelling House exemption) or CAT reliefs (e.g. Business Property relief).
How is CAT calculated?
You pay CAT on the market value of a gift or inheritance in excess of the relevant group tax-free threshold amount. You may reduce this taxable amount through relevant CAT reliefs exemptions and certain tax deductions.
The valuation date is the date when the market value of the property and assets is established for CAT purposes. The valuation date is determined by a review of the particular circumstances.
What are the current CAT group thresholds?
The current CAT thresholds for inheritances or gifts are as follows:
|On or after 9 October 2019
Group A: A son or daughter of the person giving the gift or inheritance (the disponer). Including certain foster children or a minor child of a deceased child of the disponer. Parents also fall within this threshold where they take an absolute inheritance from a child.
Group B: A parent, brother, sister, niece, nephew, grandparent, grandchild, lineal ancestor or a lineal descendant of the disponer.
Group C: People with a relationship to the disponer not already covered in Groups A or B.
CAT ‘Pay and File’ Date
All gifts and inheritances with a valuation date in the 12 month period ending on the previous 31 August, are required to be returned by 31 October of that year.
- Valuation Date 21 February 2019: File return and pay tax by 31 October 2019.
- Valuation Date 6 November 2019: File return and pay tax by 31 October 2020.
Returns may be filed before the due date of 31 October in a year. However, where a return is filed without payment, any payment due must be made by 31 October.
A late CAT payment will incur an interest charge. A late CAT return will incur a penalty.