Tax on Foreign Inheritance

Hi,

What are the tax implications for inheriting approx 50k sterling from a deceased uncle who lived in London?

The Revenue site says the following:
"Gifts or inheritances of Irish property are liable to tax whether or not the disponer is resident or domiciled in Ireland. Foreign property is liable to tax where either the disponer or the beneficiary is resident or ordinarily resident in Ireland at the relevant date."

There's no property involved as the deceased was renting, but he had cash, some in Ireland and some in London at the time of death. Does "Foreign property" also refer to a cash inheritance? The solicitor in London transferred all cash back to London in order to wind up the deceased's estate.

The solicitor in London has indicated that all monies will be sent to the executor of the will, who will then divide the monies between his siblings (the nieces and nephews of the deceased), as directed in the will. Are there any tax implications for the executor receiving all the monies? Should the executor engage an Irish solicitor/accountant when the monies arrive?

Many thanks,
FiveFingers

If you are resident in Ireland and take an inheritance of any kind of property (house, land money etc.) anywhere in the world, and the value exceeds your threshold, then you are liable to Irish Inheritance Tax.

You will probably not be liable to UK Inheritance Tax as that is usually paid by the executor on the value of the estate before dividing it up. Specific bequests in the UK afaik bear their own share of the UK estate tax, but if you take a share in the residue for example, the UK will have been paid before you get your share.

Unless the Irish property needs a Grant of Probate, then I don't think there is any need for the executor to engage an Irish solicitor.

Great, thanks a million for that.