Inheritance while resident overseas

[Djimi Traore]

Hi

I received an inheritance in 2020 from my uncle in Canada. I was living and tax resident in Australia from 2013 to 2022 and my uncle was living in Canada for decades. Given neither of us were tax resident in Ireland, my understanding was/is that there is no CAT liability in Ireland. There is no inheritance tax in Australia. I moved back to Ireland this year. I’m applying for a mortgage now and they’re asking a lot of questions re tax owing on the inheritance so I’m second guessing myself now. I don’t see how there’d be any Irish CAT liability but open to being corrected?

 

[jpd]

If the inheritance was property (in the broad sense of the word) in Ireland, then there may be tax due otherwise no CAT liability

 

[Djimi Traore]

Thanks. Yes it was a cash inheritance paid from Canada to Australia so I can't see how Irish Revenue would have any claim over it. Should have know the bank just don't know what they're talking about.

 

[RedOnion]

Should have know the bank just don't know what they're talking about.

Banks are not tax advisors.
They are lending you money, so want to be sure you can repay it. They don't want you defaulting on repayments next year because you've an unexpected tax bill of 100k and no way to pay it.
Talk to the bank, but you might need to write opinion from a tax advisor that there is no CAT due. The bank does not have to lend you money so you can't force them.