Inheritance Tax from UK

phunks

Hello, I have inherited a sum of money from a distant relative in the UK and am looking to find out some information on the potential tax I could be liable for in the Republic. I have currently paid the necessary tax in the UK and the money is currently on hold until I move it into an account of my own. I was planning on leaving it in the UK in a savings account for another few years. However, I was warned that I could potentially be liable to further Capital Gains Tax in the Republic. Can anyone explain to me what percentage that might end up being? Also how is that tax collected? I am a resident of the Republic but currently no longer live/work there so would I potentially still be liable for this tax if I am not working in the country? I appreciate any responses as I really am not sure on how the tax system works. If no one here has advice it would be grateful if they could point me into the necessary direction. 

Thanks

CIARAN_BOYLE

If Irish resident the Irish Revenue have a claim on any gifts or inheritances that you receive in Ireland.

You do have tax exemption thresholds depending on the degree of consanguity and also you can claim a credit based on UK taxes already paid.

I would advise contacting a specialist for a consultation.

Also are you Irish resident if you no longer live or work here? We're you resident (according to the legal definition) when your relative passed away?

phunks

Thank you for the reply. I am looking to open a bank account in the UK basically to hold the money for the foreseeable future. I have an option to open that as an Irish resident or as an American. If I was to open this as a American, is it correct that Irish Revenue would no longer have a claim?

CIARAN_BOYLE

phunks wrote: »

Thank you for the reply. I am looking to open a bank account in the UK basically to hold the money for the foreseeable future. I have an option to open that as an Irish resident or as an American. If I was to open this as a American, is it correct that Irish Revenue would no longer have a claim?

What matters is if you were Irish resident or ordinarily resident on the date of when the rights to the inheritance became yours, ie the date your relative passed away (or possibly the date of probate but that usually only applies to property in certain circumstances).


Residence is defined below
http://www.revenue.ie/en/tax/it/residence.html

Ordinary residence is defined in the below
http://www.revenue.ie/en/tax/it/leaflets/res1.html

The liability either exists or it doesn't depending on your situation. There is nothing you can do now to alter that fact.

phunks

Thank you that was exactly the information I was looking for! I know you have already said it is dependent on the individual situation but do you know or could you link me to any resources on how much I will be liable for? On paper it is a fairly distant relative.

CIARAN_BOYLE

phunks wrote: »

Thank you that was exactly the information I was looking for! I know you have already said it is dependent on the individual situation but do you know or could you link me to any resources on how much I will be liable for? On paper it is a fairly distant relative.

There's some historical cat rates here depending on the date of death or the date that is relevant for cat which is occasionally not the date of death but rather the date of probate. Talk to an advisor to be sure.
http://www.revenue.ie/en/tax/cat/rates.html

Tax free threshold are here
http://www.revenue.ie/en/tax/cat/thresholds.html

Either category a b or c.

You will also get relief for UK taxes paid according to the convention between Ireland and the UK in relation to inheritance tax
http://www.revenue.ie/en/tax/cat/guide/double-taxation.html#section2

I hope this helps. If it's a significant inheritance I would make sure that you speak to a professional advisor. I'm just throwing links at you and making vague comments because I don't have insurance that covers giving advice on boards.ie.

phunks

Ok I am going to take your advice and speak to a professional advisor. Is there any resource in particular I should use to find one? Or should anyone with the a[font=Verdana, "Lucida Grande", "Lucida Sans Unicode", Tahoma, Arial, san-serif] [/font][font=Verdana, Lucida Grande, Lucida Sans Unicode, Tahoma, Arial, san-serif]Chartered Tax Adviser (CTA) qualification be sufficient. Thanks again for all the help.[/font]

CIARAN_BOYLE

phunks wrote: »

Ok I am going to take your advice and speak to a professional advisor. Is there any resource in particular I should use to find one? Or should anyone with the a[font=Verdana, "Lucida Grande", "Lucida Sans Unicode", Tahoma, Arial, san-serif] [/font][font=Verdana, Lucida Grande, Lucida Sans Unicode, Tahoma, Arial, san-serif]Chartered Tax Adviser (CTA) qualification be sufficient. Thanks again for all the help.[/font]

Any CTA or even the average ACA working in tax should be able to help.