Inheritance tax from Britain

stevie123c

Hi All
Just received word that I'm going to receive over €100,000 in inheritance from my cousin in England and was wondering does anybody know the situation with Tax, will I be taxed twice, once over there and once over here? How does it work?

Thanks in advance.

nompere

UK tax and Irish tax work completely differently.

They tax the whole estate. So it depends on the total value of the estate how much tax gets paid. Whether your inheritance gets taxed there then depends on whether you are getting a share of the residue or a legacy. If you're getting a share of the residue of an estate that has been taxed in the UK you will probably need some professional help.

Here your inheritance gets taxed. The class B threshold for 2010 is €41,481. The threshold does depends on when your cousin died not on when you get the money. The tax is 25% of the difference between what you get and the threshold amount. How much you are deemed to have received here will depend on whether it has been taxed in the UK already. Because it is the gross amount before UK tax that gets taxed in Ireland.

Then you need to go into the double taxation treaty to work out how much relief you get here for the tax that has been paid in the UK.

It's not the easiest area of tax.

stevie123c

Thanks very much for the help and the level of detail you went into, you've cleared that up for me.