Tax in inherited money from the UK?

kstand · 27-01-2015 2:53pm #1

Hypothetical question here:
Say Mr A has a brother who dies in the UK (or wherever for that matter), just use the UK as an example.
His brother doesn't leave a will on his estate so Mr A and say 2 other siblings are entitled to a third share in his estate as the next of kin.
Probate is granted etc and the sale of the estate executed and inheritance tax paid in the UK on the estate a Mr A is due to be paid his share.
1. Can he then be taxed in Ireland on the money he has come into?
2. Do the tax office or any other government body need to be informed or are they informed of the money he receives?
Or how does it work?
Thanks.

nompere · 27-01-2015 3:59pm

An inheritance from the UK would be chargeable to inheritance tax in Ireland, and Mr A would be able to claim relief for the UK tax paid. That calculation can be a little involved.

An Irish resident who receives an inheritance of more than 80% of the threshold (currently €30,150 between brothers) is obliged to make a return to Revenue.

kstand · 27-01-2015 4:01pm

So let me get this right - an Irish person inherits money from the sale of a siblings estate in the UK - and tax has already been paid on that estate in the UK.
Yet that person has then to pay tax to the Irish government?

nompere · 27-01-2015 4:03pm

Yes - though depending on how the credits work out, the tax might be nil.

kstand · 27-01-2015 4:04pm

nompere wrote: »

Yes - though depending on how the credits work out, the tax might be nil.

Is there any direction you can point me where I might be able to work this out?

nompere · 27-01-2015 4:11pm

http://www.revenue.ie/en/tax/cat/guide/double-taxation.html#section2

It's not easy, though!

kstand · 27-01-2015 4:11pm

nompere wrote: »

http://www.revenue.ie/en/tax/cat/guide/double-taxation.html#section2

It's not easy, though!

Thanks for your input.

CIARAN_BOYLE · 27-01-2015 5:19pm

situation with the uk is slightly different than other countries though

nompere · 27-01-2015 9:24pm

CIARAN_BOYLE wrote: »

situation with the uk is slightly different than other countries though

That's (almost) true. The UK and the US are the only countries with which Ireland has a double tax treaty for gift and inheritance taxes. So they're the only ones where there's a credit for tax paid. Otherwise the rule, as outlined in the Revenue document, is that the foreign tax is a deduction from the inheritance - and that is generally far less beneficial

Tax in inherited money from the UK?

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