Valuation date and the value of benefits

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
  • 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
    • the date the executor or administrator gives the asset to you.
  • 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
    • 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 (and not the valuation date)
- an inheritance, are usually determined by the date of death (and not the valuation date).

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