CAT in UK

I am told that I can claim an allowance of over £12,000 against CAT applicable on a house in UK which I am due to inherit a portion of and that my husband can also claim this this allowance if I give my portion of the house to him. CAT in UK is 20% payable on the difference between probate value and sale price. But as we both live in Ireland and do not pay any UK taxes, how can this be correct?

hazelgreen said:

But as we both live in Ireland and do not pay any UK taxes, how can this be correct?

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This overview may be relevant.

hazelgreen said:

I am told that I can claim an allowance of over £12,000 against CAT applicable on a house in UK which I am due to inherit a portion of and that my husband can also claim this this allowance if I give my portion of the house to him. CAT in UK is 20% payable on the difference between probate value and sale price. But as we both live in Ireland and do not pay any UK taxes, how can this be correct?

Click to expand...

I suspect you're mixing up CAT & CGT. There's no such thing as CAT per se in the UK, just Inheritance Tax. (Gift Tax doesn't exist in the UK). As the asset and presumably the inheritance are in the UK, the UK tax authorities will have first dibs on taxing them as appropriate. You may also have an Irish tax liability on same as you are resident here, in which case you should be entitled to claim any UK tax paid as a credit against the corresponding tax liability here.

Apologies, yes CGT as the final sale price of a property exceeded the probate value. HMRC are still deliberating over the inheritance tax but now we need to pay more but these allowances can offset the amount. The estate can claim one allowance and also each of the beneficiaries provided they have not already used up their allowance. I am the only non UK taxpayer.