International inheritance

[LivingLaVidaCovid]

I recenly inherited some money in Ireland. The entire estate is based there with no UK asserts.
Probate concluded all tax was declared in Ireland (none payable)
I have now been issued a euro check.

My family are adamant the if I open a UK international euro account with someone like HSBC
I will:
A. Have to pax uk tax
B. It will reduce the amount I can inherit tax free within the UK later on.

They are suggesting I open a irish bank account which as you can imagine is a huge faff.

For context in Ireland you can, across your life, only inherit a certain amount tax free (about 325k) So if i had inherited this amount now, anything else I inherit in the future will be subject to tax even if it's a different person who wills it to me.
In the UK I understand that if (god forbid) 4 people die and you (for example) received 250k from each of them - the full 1m would be received and it would all be tax free, right?

All help gratefully received

I think you need proper legal advice.

Get legal advice from a qualified solicitor. Your tax position will depend on your tax residence (for income tax and capital gains tax) and domicile (for inheritance tax), but if you live and work in England/Wales then there's no reason your inheritance from Ireland will have any impact on your tax position.

Sorry - solicitor or chartered tax advisor.

Are you likely to inherit more money in Ireland in the future? If not then you don't need to worry about your tax allowance in Ireland.

only pay tax if get caught, so I'd probably ignore that risk & proceed -- how much are you talking? I think general principle is that inheritance tax only applies where the estate was processed, and after that it's your money to move around as you please.

If client is UK resident and domiciled the remittance of cash from overseas is a non event for tax purposes.

afaik, No lifetime-multiple-source limit in UK on how much you can inherit -- there is a single event/source limit (£325k).

When this happened to me I did as you have. All correct tax declarations etc sorted in Ireland. The solicitor then transferred the money to currencies direct who exchanged it to GBP and deposited it in my UK account. UK and Ireland have a reciprocal tax agreement, of at least they did pre Brexit.

Thanks for the replies.

Every professional I spoke to has basically said we don't do international you need proper advice. (From where???) 😂😂😂😭

• AFAIK they still have the reciprocal agreement in place.
• Life can surprise you but No more inheritance is expected from Ireland

@lljkk thanks for answering B I was sure there.was no multiple source limit in the UK bit family were adamant and I couldn't find a link "proving it"

Hi OP. You’re not correct re the inheritances in Ireland, that there’s a cap on all inheritances m. Basically there’s theee groups of people you can inherit from and there’s caps within those three groups. So Category A is parents and children Category B is siblings and aunts/uncles etc and Category C is everyone else. You can inherit different amounts under these groups without paying tax. So if you have future inheritances they might fall in to a different group so if you’ve used up your parents allowance but your uncle leaves you something that’s treated as a group B inheritance. See here under CAT groups and thresholds www.revenue.ie/en/gains-gifts-and-inheritance/cat-thresholds-rates-and-aggregation-rules/cat-groups-and-group-thresholds.aspx

So often I see questions posted that seem to stem from people assuming tax systems work the same way in different countries. In this case your family.

B. Is clear. UK inheritance tax is paid by the estate before anyone inherits, so unless you are an Irish resident there can be no impact on UK inheritances in the future.

in terms of investing your money, your returns will be subject to UK tax if you are UK resident (ignoring domicile which is increasingly irrelevant unless you are mega wealthy).

There could be some pros and cons for you individually investing in any particular manner or country. Hence regulated advisors will steer clear of any questions they aren't qualified to address. Unfortunately!

I am not an advisor just interested as moved to the UK from a country with no inheritance tax and my mother has assets in both places.... In your position I'd probably satisfy myself that I wasn't missing anything and do what you propose.

@LivingLaVidaCovid

Thanks for the replies.

Every professional I spoke to has basically said we don't do international you need proper advice. (From where???) 😂😂😂😭

• AFAIK they still have the reciprocal agreement in place.
• Life can surprise you but No more inheritance is expected from Ireland

@lljkk thanks for answering B I was sure there.was no multiple source limit in the UK bit family were adamant and I couldn't find a link "proving it"

As far as I can see, you have inherited a lot of money - you can afford to pay for advice

Find an accountancy firm with both UK and Irish offices and sleep easy