Inheritance tax liability on UK savings

D

Dduddy

New Member
Messages
9
Hi
If I am resident in Ireland but have cash savings in the UK as I previously lived in UK for 60 odd years., does the euro equivalent of the UK savings get added to my Irish located assets for the purpose of inheritance tax or is it a separate asset liable to UK tax?
I'm aware of the tax free thresholds.
Thanks
 
You live in Ireland.

You have assets in Ireland and in UK.

You die in Ireland.

The probate process distributes these assets to the beneficiaries of your will.

The beneficiaries may be liable to CAT, yes, on all the assets in the will.


What matters for CAT is more the location of the beneficiary, not the location of the assets.
 
Protocol said:
You live in Ireland.

You have assets in Ireland and in UK.

You die in Ireland.

The probate process distributes these assets to the beneficiaries of your will.

The beneficiaries may be liable to CAT, yes, on all the assets in the will.


What matters for CAT is more the location of the beneficiary, not the location of the assets.
Click to expand...
UK IHT might also be relevant here.
 
Protocol said:
What matters for CAT is more the location of the beneficiary, not the location of the assets.
Click to expand...
To expand a bit, both matter. If the UK assets are in excess of UK inheritance tax limits, UK inheritance tax could apply. An Irish beneficiary could then get a credit against Irish CAT for the amount paid in UK.

Where it gets complicated is a relationship where tax applies on UK, but not in Ireland as the beneficiary has no Irish liability to use the credit.
 
It's relating to the equivalent of 280k euros held in a sterling easy access building society account in England.
Irish assets are main residence about 275keuro, some rough farmland circa 120keuro and savings in Ireland of €59k
My son will be the beneficiary, who lived in the UK til 2007 and has resided in the Republic since.
 
Have a read of this

everlake.ie

Ireland & UK Double Tax Convention - Everlake

Understanding tax rules, Ireland & UK differences, and double tax convention is an essential part of the financial planning process.
everlake.ie everlake.ie

You are most likely Irish resident but U.K. domiciled.

Irish cat will apply to Irish situs assets but you will be subject to U.K. inheritance tax on your worldwide assets
 
If you're Domiciled in UK. then worldwide assets subject to UK inheritance tax. You could be also deemed domicile by virtue of living there a certain number of years under their tax law.
 
You must log in or register to reply here.
Back
Top