UK Inheritance Tax and Ireland

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geriatric

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Hi

I am about to receive an Inheritance from my Aunt who resided in the UK. I am one of eighteen nieces & nephews due to receive approx €62k each.

The total of her will is approx €1,130,000 which comprised of house sale and investments. This figure is net of UK Inheritance tax paid, this was £320,249 Stg.

Can anyone advise me please, do I have to pay Inheritance tax again in Ireland on the €62,000 I am due to receive? Is there a Tax agreement in place between Ireland and the UK which if it's paid in one country then you wouldn't be liable in the other country?

Thanks in advance.
 
Yes there's an agreement.

Assuming you haven't used any of your €30,150 Group B threshold, from an Irish perspective that amount will be fine.

However, because it's the estate that taxed in the UK (rather than a beneficiary), someone will have to calculate the value of the credit for the UK tax, mindful of the fact that the €62,000 is net of IHT.

IHT arises at 40% and CAT arises at 33% but there are apportionment and grossing up calculations to be done. I'd suggest getting advice, PM me for a referral if you like.
 
Thank you very much for your response Gordon.

One of the other beneficiaries (my brother) is checking it out with his Tax Advisor at present. Am I right to assume that what advice he receives will be appropriate for me also?
 
If your circumstances are the same then the advice will be correct for you too.

Come back and tell us the result, I've seen anomalies where people who receive cash don't get a credit because the it's assumed that the residual legatee actually pays the tax.

So the question is what does the will say? Does it say my estate is to be divided among 18 beneficiaries or 18 people are to get £50,000 each and the remainder is to go to the local dogs home.
 
It's a long drawn out process so.

The Irish beneficiaries will have to get a letter from the UK HMRC with details required by the DTA.

The Irish beneficiaries will have to get a PPS number of the deceased before the CAT return can be filed online, the beneficiaries will have to have their own PPS numbers not their husbands with a W.

Beware that the filing date could be 31 October 2016!!
 
Yes it has taken over two years, however, we are now at the stage that the inheritance is about to be distributed.

Thanks again for the advice, much appreciated. I'll let ye know how we get on.
 
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