Inheritance Tax

[mazylou]

I wonder would anyone know if I am liable for UK tax as well as paying tax in Ireland on an inheritance from my late aunt's estate? I've filled in the CAT form as it's over the threshold, so that's in train. Thanks in advance. I am resident in the UK for tax purposes.

In the UK IHT is paid by the estate, not by the beneficiary. You'll need advice from an Irish lawyer. I'm assuming she lived in Ireland.

Thank you - she did.

IHT in Ireland follows considerably different rules to the UK, your relationship to the deceased is relevant.

There is a double taxation agreement between the UK and Ireland, and it's one of the few that specifically cover IHT.

I think (from something I saw years ago) that tax is calculated in Ireland according to Irish CAT (Capital Acquisitions Tax - IHT) laws, and then it is calculated in the UK according to UK IHT laws.

If you have paid less than the UK amt, you are liable for the difference.

However if you have paid more than the UK amt, you don't get a refund (but don't have any further liability).

But as PPs said, get appropriate tax advice.

link to Irish Revenue site

Surely that would be against double taxation rules?

link to Irish CAT/IHT thresholds

If she was your aunt by blood, threshold B applies (anything over €32,500 is taxable)

However if she was your aunt by marriage, threshold C applies.

As I said, it's a very long time since I saw anything on this, so you should check with an Irish tax expert to verify.

Thanks, littlewoolly, it’s a blood relation, and I am going to talk to the Irish solicitor shortly. And my accountant!

Much appreciated.

Hi there,
I wonder what you resolved? Resident in UK. I am in a very similar position to you - with my Irish aunt and her estate. If I decide to pay tax in UK ( guessing more advantageous to me) those this affect the share my siblings in Ireland get. So maybe it is fairer that I choose to pay Irish taxes. Did you have this dilemma? Many thanks