CAT Queries

B

Bex181018

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Hi there,

I have 2 questions.

1. So myself and my brother are receiving half of my grandparents' estate. My grandparents died last year, and they had named my father to receive half of their estate in their will. However, my father died back in 2015. In their will, they mentioned if my father dies, his portion of the estate is to go to any surviving children. Would this allow myself and my brother to claim a Category A threshold as it's coming from my dad's death in the will? Or does his death not matter, and we can only claim Category B? I would really appreciate any clarification on this. Just to confirm, I have asked the solicitor in England and she said no inheritance tax is liable in the UK on the estate.

2. I also had another question in regards to domicile. My brother and I were born in England, my father was English and my grandparents lived their whole lives in England (the estate we are receiving are English assets). I moved to Ireland when I was 4 and my brother was 1.5. I'm currently 25. Does our domicile stay as the domicile of birth i.e. England? Or since we moved to Ireland and got citizenship, does that change to a domicile of choice i.e. Ireland? I intend one day to move back to England as I love it there, and visit regularly but have no current plans but hope to in next few years. Which do I put as my domicile when filling out the IT38 Form? Can I leave it as England even though I have no plans set in stone yet like accommodation or a job sorted - what will Revenue think?

Sorry for the big paragraphs, appreciate any help on these 2 matters. Thanks.
 
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1. CAT A only applies if the grandchildren are under 18. Otherwise CAT B applies.


Group A​

The Group A threshold applies where you, the beneficiary, on the date of the gift or inheritance are:

  • a child of the:
    • disponer
    • disponer’s spouse or civil partner (commonly known as a stepchild)
  • a minor child, under 18 years of age, of a deceased child of the:
    • disponer (commonly known as a grandchild)
    • disponer’s spouse or civil partner (commonly known as a step-grandchild)
  • a minor child of the spouse or civil partner of a deceased child of the:
    • disponer
    • disponer’s spouse or civil partner
  • a parent of the disponer and you take an absolute interest (that is, not a of the inheritance on the death of your child.
 
You may be able to claim some CAT relief for the estate taxes, if any, paid in the UK on your Grandparent's estate

Inheritance taxes in the UK are a liability of, and paid by, the estate of the deceased not by the beneficiaries.

Sorry, but I do not know how the tax relief is calculated but others here may be able to help
 
Domicile is a complex area of tax law and really you'd need to get advice on it from a competent practitioner with experience in dealing with domicile issues.

At 25 it's unlikely you'll have any domicile of choice in your own right yet, and your domicile is likely tied to that of your father.

It may seem like a strange question but where was your father living, when he passed away, and where is he buried? Ditto your grandparents - I note you say they lived in the UK all their lives, but that's not the same as them being English, so I'm wondering were they originally Irish, and were they buried over here? The significance of this is that the case law, which goes back 100+ years, places a lot of weight on factors like where a person planned to spend their final days or be buried after they'd passed on.

It's entirely possible that your grandfather, if originally Irish, may be deemed Irish domiciled even though he left here a lifetime ago, if his body was returned here for burial, and as a result your father despite possibly being born and living most of his life in the UK, may have always been Irish domiciled, too. And likewise you and your brother. All because of a view on your grandfather's Irish domicile of origin never having changed. Like I said though, it can be complex!
 
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torblednam said:
Domicile is a complex area of tax law and really you'd need to get advice on it from a competent practitioner with experience in dealing with domicile issues.

At 25 it's unlikely you'll have any domicile of choice in your own right yet, and your domicile is likely tied to that of your father.

It may seem like a strange question but where did your father live when he passed away, and where is he buried? Ditto your grandparents - I note you say they lived in the UK all their lives, but that's not the same as them being English, so I'm wondering were they originally Irish, and were they buried over here? The significance of this is that the case law, which goes back 100+ years, places a lot of weight on factors like where a person planned to spend their final days or be buried after they'd passed on.
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No my mother's side is the Irish side, whereas my father's side is completely English. My parents just moved to Ireland when I was 4 for a better Education/Life for myself and my brother. So my father is buried in Ireland, he lived here for 11 years before his death and 37 years in England. My grandparents were born in England and lived their whole lives in England, they were cremated in England also.

Thanks for your insight! I'll get onto a solicitor as I might need to anyway to discuss the CAT.
 
torblednam said:
It's entirely possible that your grandfather, if originally Irish, may be deemed Irish domiciled even though he left here a lifetime ago, if his body was returned here for burial, and as a result your father despite possibly being born and living most of his life in the UK, may have always been Irish domiciled, too.
Click to expand...
This intrigues me. My understanding of domicile is where you lived and paid tax. Can you really claim Irish domicile by being born (and even educated) and buried only ?
 
Per revenue it says:
Domicile is a concept of general law. It broadly means living in a country with the intention of living there permanently. Domicile is a much more permanent concept than residence.

Everyone has a ‘domicile of origin’ at birth (usually the domicile of the father). You keep your domicile of origin unless you choose to gain a new domicile.

To gain a new domicile, you must show clear evidence that you:

intend to live permanently in the new country
and
do not intend to return to live in your domicile of origin.

So I suppose since I intend to move back to live in England permanently, then my domicile will stay as England.
 
I was born and reside in Northern Ireland. I have inherited land in the Republic that is currently being sold. Do i pay CAT and if i do can i claim any relief?
 
Blueboyblue said:
I was born and reside in Northern Ireland. I have inherited land in the Republic that is currently being sold. Do i pay CAT and if i do can i claim any relief?
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CAT applies to gifts and inheritances that are taxable in Ireland where any one of the following three conditions exists:

  • the disponer is resident, or ordinarily resident, in Ireland for tax purposes
  • the beneficiary is resident, or ordinarily, resident in Ireland for tax purposes
  • or
  • the property is situated in Ireland.
As the land is in Ireland, I say you will have to pay CAT.
 
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