Inheritance Tax from another country

blahblahbla

If a relative dies in the UK and they leave you some money in a will.I have been told that the English system taxes the estate first and you don't need to pay tax on anything you get as its already been paid by the initial estate.But if you are a resident in Ireland and you get your share of the inheritance do you have to pay more tax since the money comes into Ireland from the UK?

DmanDmythDledge

I'm going to assume you are Irish tax resident, ordinariy tax resident and Irish domiciled.

In the above scenario you would be subject to CAT on the inheritance in Ireland at the standard rate of 33% on any amount above the threshold amount. If you have paid CAT (or the equivalent tax in the UK) that tax paid would be deducted from your final Irish CAT liability.

blahblahbla

DmanDmythDledge wrote: »

I'm going to assume you are Irish tax resident, ordinariy tax resident and Irish domiciled.

In the above scenario you would be subject to CAT on the inheritance in Ireland at the standard rate of 33% on any amount above the threshold amount. If you have paid CAT (or the equivalent tax in the UK) that tax paid would be deducted from your final Irish CAT liability.

Thanks for that, just to follow up.
If I'm reading this correctly:
http://www.revenue.ie/en/tax/cat/thresholds.html
If I was inheriting from a great granduncle, for example, and it was under 15,075 I would not have to pay tax or declare anything?

DmanDmythDledge

If you have not received a previous gift or inheritance from anyone outside of Group A and Group B or received a gift/inheritance without utilising your Group C threshold then you would be able to fully utilise the Group C threshold amount. The threshold limit is a lifetime limit.

If the inheritance is at least 80% of the threshold amount (€12,080; €15,075 * 80%) then you would have to file an IT38 return.