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Valuation date and the value of benefits

  1. Overview
  2. What is the valuation date?
  3. Taxable value of a gift or inheritance
  4. Limited interest
  5. Factors used for calculating the value of limited interest
  6. Rights of residence
  7. Annuities and other periodic payments
  8. Free use of property and interest free loans

What is the valuation date?

The valuation date is the date on which the market value of a gift or inheritance is established. The market value is the best price you would get if you sold the item on the open market. The valuation date determines the date by which a return must be filed and tax must be paid.

The valuation date for a gift is generally the date you receive it. The valuation date for an inheritance is the earliest of the following dates:

  • the date the executor or administrator is entitled to retain the asset for your benefit
  • the date on which the asset is retained
  • or
  • the date the executor or administrator gives the asset to you.

The valuation date is the date of death if:

  • someone gives you a gift in anticipation of their death
  • there is a failure to exercise a power of revocation
  • or
  • the property passes by survivorship.

Note

The tax free group thresholds and rates of tax that apply when you receive:
- a gift, are determined by the date of the gift, not the valuation date
- an inheritance, are usually determined by the date of death, not the valuation date.

  • Example 1 – Inheritance received under a will

    In his will, David left his house to his sister Anne, who was living with him, and €50,000 to his nephew, Brendan. He left the balance of his estate (shares and bank accounts) to his brother, Charles.

    The valuation date for each of these inheritances is for:
    - Anne, the date of death (she is already living in the house)
    - Brendan, the date of the Grant of Probate or if the €50,000 is paid earlier, the date of payment
    - Charles, the date the final balance of the estate is known (this may be later than the date of Grant of Probate).

  • Example 2 – Gift and inheritance received under a deed

    When Joe retired from farming he transferred his land in a deed to his sister, Margaret, as a gift for her life. After Margaret's death it is to be passed to his nephew, John.

    The valuation date for Margaret is the date of the deed. The valuation date for John is the date of Margaret's death.

Next: Taxable value of a gift or inheritance

Published: 04 May 2023 Print this page

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