tax on inheritance deposited in a UK bank

D

daithi200

Guest
Hi,

Myself and my brothers & sisters were left a house in the UK by our uncle when he passed away several years back.

We are in the process of now selling this house, and i hope to receive £50,000 from the sale.

I was thinking of depositing the money in a savings account in a UK bank where i still have a current account from when i was in college years ago (and the current account is registered to my address in ireland).

Are there tax implications of depositing this money?
Will the UK bank inform the Irish tax office about the deposit?
Would i be liable to pay UK and/or Irish inheritance tax?

Any other items that i should be aware of?

Thanks,
Daithi
 
In the UK, on a death, any tax is raised on the estate of the deceased.
In Ireland, tax is due on the receipt of a gift or inheritance.
£50,000 would be over your CAT threshold, and you should make a return to the Collector General here. I believe the relevant portion of any probate tax paid in the UK by the estate would be allowed against your CAT liability, so there may even be no balance to pay.
The UK bank will inform the Irish tax authorities if you elect to receive your interest gross.
 
Thanks for the info. Have no idea about tax in relation to this so I just have a few more questions. What does CAT mean? If probate tax has been paid in the UK by the estate do I have to pay inheritance tax in ireland aswell?

Also can you explain what interest gross is? Does it mean I should open a savings account with interest net??
 
CAT = Capital Acquisitions Tax

Its possible that you were liable to pay a CAT liability and file a CAT return (known as an IT38) when you received your share of your inheritance following your uncle's death. If you suspect this is an issue, you should research this with your solicitor and/or tax advisor. In the meantime you can google these terms to access the various CAT-related material on revenue.ie
 
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