Inheritance Tax

[DaiJenks]

Hi,

I'm a UK citizen resident and working in Ireland since 2001.

A grandmother has passed away leaving all her estate to be split between my brother and me, 50/50. He's resident in the UK

It's money only, no property, probably in the region of £80-90k sterling, so 40-45 each.

My question relates to inheritance tax. Under Irish revenue laws it appears that there's a threshold of €30k and over that is taxed at 33%.

Under UK law (so for my brother) there's no liability below £325k.

Does the estate get released untaxed, and then I make a submission to the Irish revenue of the tax I am liable for, or are there other ways of legitimately dealing with it? Have I understood the law and thresholds correctly?

thanks for any guidance
DaiJenks

 

[oldnick]

Your figures are right. For example, you'll be paying about €8.000 tax if you inherit 54.000 euros.
Fill out an IT38 return -available online- with the figures.

Of course, if you decide that you only want €30.150 then your inheritance is tax-free.
You are not obliged to take the full amount.Your brother can have it.