A friend of mine was wondering was this straight-forward. His brother died in the UK having lived there for the last 30 years. He had a property in Ireland (investment) and his PPR in England. I presume all proceeds will be sold and added up and the probate will be dealt with in the UK. At that point the inheritance will be dispersed to his siblings in Ireland. The UK taxes the estate rather than inheritors so it will be taxed accordingly in the UK. What happens on the Irish side for the recipients ? Are they then taxed on anything above the 33k (ish) threshold ? Is there any way of dealing with the Irish property as a different entity ? Any advice on procedure gratefully accepted.
Irish citizen, domiciled in England 30 years - Probate
- Thread starter Madramor
- Start date
They will be deemed domiciled in the U.K. and subject to U.K. inheritance tax on their world wide assets. However ireland has taxing rights in Irish property so that will be subject to CAT.
Then you have to deal with the timing differences for the two taxes
everlake.ie
Then you have to deal with the timing differences for the two taxes
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
Thanks. That seems straight forward given it was always an investment so CAT will probably be due. Thing is though, if the estate is taxed in the UK, is the tax then split 6 ways for each sibling and any tax above this due in Ireland is paid to Irish revenue ? So for example, estate total €600k includes Irish and English properties sold. Tax due in UK is 40% on anything above roughly €360k. That would mean each sibling would have paid 16k tax in the UK (40% of 240k / 6). The remainder (600k - 96k) is then split 6 ways (roughly 85k) and doled out to the siblings. What effective tax is due to in Ireland ? I would imagine revenue here would want anything above 33k to be taxed here but can the 16k be deducted from that ?
Btw. They have wisely chosen an Irish and an English solicitor to deal with this on both sides of the pond. I'm just curious as I have many friends (possibly including myself) who may well be in this boat.
Whether the property in Ireland was a PPR or not would affect CGT (which is extinguished on death anyway) but if he was resident in England it cannot have been his PPR anyway.
It could affect CAT if the person inheriting it was living in it but that does not appear to be the case here.
It could affect CAT if the person inheriting it was living in it but that does not appear to be the case here.
hazelgreen
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My mother died in UK where she lived for most of her life. Probate was taken out in UK and inheritance tax paid on the estate. There were 26 beneficiaries around the world and several in Ireland. Do they need to pay on the amounts over the Irish allowances for a child/grandchild etc? How does the double taxation agreement work if both governments take a share?
Sorry my bad. I meant CGT
. I don't appear to be allowed edit my post above.