Inheritance Tax U.K.

[Bedlam]

Hi,

Anybody familiar with Inheritance Tax in the U.K. that could answer the following query.

If you inherit property from a relative who lived in the U.K. Under U.K. rules if you redistribute the inheritance within 2 years you are not liable to any tax? If this is correct and was followed what would the position of the Revenue here be to a such a course of action?

Any feedback appreciated

Thanks


Bedlam

 

[Domo]

I don't know where you got the information regarding the fact that no IHT will be payable if the Estate is distributed within 2 years.... I have never heard of that.

Please see the link to the HMRC guidance:

 

[4th estate]

Never heard of that provision either. But what I do know is that the will can be "Varied", in other words the details of the will can be changed to give different benefits to different people - with mutual agreement. Strange... but true.

I think this is because the UK charge a tax on the estate of the deceased so varying a will makes no difference to them, whereas here in Ireland we tax the beneficiary, so varying a will here is a no no, as it might be done for tax reasons.

Just my thoughts, and I stand to be corrected.

 

[Bedlam]

Thanks for the feedback. Do you feel that if the variation was availed of and the Inheritance was passed onto other Family members would the person (Irish resident) passing on the Inheritance incur a tax liabilty here?


Thanks

Bedlam