Inheritance Tax: Why the Valuation Date Is More Than Just a Date

When it comes to Capital Acquisitions Tax (CAT), many people assume that figuring out when you get an inheritance is straightforward. The person passes, the asset transfers, and inheritance tax is payable.

Not quite.

Welcome to the complex world of valuation dates, where nothing is ever as simple as the date on the will or the cheque in the post. And no, the grant of probate, contrary to popular belief, is not always the valuation date.

Let’s unpack it.

What is the Valuation Date?

The valuation date is a cornerstone of CAT. It is the date that determines when the value of your inheritance is assessed and, crucially, when the clock starts ticking for paying your CAT liability.

For inheritances, the valuation date is typically the earliest of the following:

• The date the personal representative (executor where there is a will or an administrator where there is no will) is entitled to retain the inheritance for the benefit of the successor.

• The date the inheritance is actually retained or taken into possession.

• The date the inheritance is delivered, paid, or otherwise satisfied.

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In simpler terms, it is the date when the beneficiary can legally get their hands on the inheritance. This could be the date of death, the date of grant of probate, or even later, depending on the circumstances.

The common myth: “It’s the Grant of Probate… right?”

Nope.

The grant of probate is often used as a benchmark because it is the point when the personal representatives are legally allowed to deal with the assets of the estate. The exception to this general rule is where the personal representatives allow a beneficiary to take possession of the asset before the grant of probate date.

The following are a list of circumstances where the grant of probate date may not be the valuation date:

• If a beneficiary is a joint tenant of a property, the valuation date is the date of death, because on the death of a joint tenant, their interest automatically passes to the surviving joint tenant(s).

• If a beneficiary is living in a property bequeathed to him/her by the deceased, then the date of death is likely to be the valuation date.

• If a cash payment is advanced by the personal representatives to a beneficiary before the issue of a grant of probate, then the date of advancement is likely to be the valuation date.

• If the residue of an estate cannot be determined at the date of grant of probate, then the date on which the residue is ascertained is the relevant valuation date.

• Where assets are settled on a discretionary trust under the terms of a will, the valuation date for benefits received by a beneficiary will be the date of appointment of the assets to the beneficiary.

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Why the valuation date matters

Because everything hinges on it.

1. Tax DeadlinesYour CAT return and payment of any attendant liability is due by 31 October following the year in which your valuation date falls.

   • Valuation date between 1 Jan–31 Aug → File by 31 Oct same year

   • Valuation date between 1 Sept–31 Dec → File by 31 Oct next year

   
   

For example:  

• If the valuation date is 15 March 2025, the CAT return and payment are due by 31 October 2025.

• If the valuation date is 10 November 2025, the CAT return and payment are due by 31 October 2026.

• ReliefsThe criteria to avail of Business Relief and Agricultural Relief are both determined on the valuation date.

• Interest ChargesIf tax isn’t paid on time, interest runs from the valuation date, not the date of the inheritance or probate.

Date of Death Determines the Threshold

While the valuation date determines when tax is payable, the date of death determines the applicable CAT rate and tax-free threshold.

In Ireland, CAT thresholds (as of 2025) are:

• Group A: €400,000 – Parent to child (including adopted children, stepchildren, and certain foster children).

• Group B: €40,000 – Siblings, nieces, nephews, grandparents, and grandchildren.

• Group C: €20,000 – All other relationships.

The date of death locks in the threshold and tax rate, so even if the valuation date is years later, the threshold applicable at the time of death applies.

For example, if a parent dies in 2025, the child’s Group A threshold is €400,000, regardless of when the inheritance is received.

Final Thought: Timing is everything

The valuation date isn’t a footnote. It can significantly impact:

• When tax is due

• Which reliefs apply

• How much interest might accrue

In rising markets, an earlier valuation date could reduce the tax liability. In falling markets or disputed estates, a later date, where legally supportable, might be more favourable.

But flexibility is limited. And with complex estates, especially involving discretionary trusts, foreign assets, or litigation, the valuation date can be far from obvious.

A word to the wise

If you're navigating an inheritance, don't assume the valuation date is automatic or obvious. Revenue certainly won’t. And inaccuracy here could cost real money, in tax, lost reliefs, or penalties.

Professional advice at the right time can ensure you get this pivotal detail right and avoid costly surprises later.

Clarity. Strategy. Peace of Mind.

At Taxkey, we don’t just handle Inheritance Tax, we help you plan smarter, navigate complexity, and protect what matters.

Our team brings clear advice and sharp strategy to every step of the process to help you get it right from the start.

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DISCLAIMER This article does not constitute professional accounting, tax, legal or any other professional advice. No liability is accepted by Taxkeyfor any action taken or not taken in reliance on the information set out in this presentation. Professional accounting, tax, legal and/or any other relevant professional advice should be obtained before taking or refraining from any action as a result of the contents of this article.