Did he have to pay inheritance tax?

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RichardCoeurdeLion
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Did he have to pay inheritance tax?

Postby RichardCoeurdeLion » Sun Aug 13, 2017 11:29 am

Visited my friend Tarquin who used to live on an urbanisation near Estepona, but came back to uk about two years ago.
His wife Samantha died about six years ago. They were joint owners of their property.
After she died he just carried on living there as if nothing had happened.
The property has now been sold.

He has had to pay inheritance tax now because he inherited her share.

Is that correct?

AkoAko
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Re: Did he have to pay inheritance tax?

Postby AkoAko » Sun Aug 13, 2017 11:41 am

If his wifes half passed to him through the Spanish rules for inheritance tax or through UK rules he is still liable for Spanish IHT , didn't keep it for long enough however he might still not have any tax liability . It also depends where he was registered and the allowances for that area , the date of death is the governing factor and at the time of his wifes death the state allowance was around 15k , Andlucia had an additional 175k up until Jan this year however €1 over 175k and the WHOLE amount is taxable . From Jan 1st this year the allowance is 250k and the tax is charge ONLY on sums above this .

There are other factors that will change the above , if he inherited under the Spainish rules then any kids they have will also have inherited a share and be liable , the amount depends on their fiscal residency , also the wealth of your friend can have a bearing on everything .

Its not a simple thing to answer but most of the information can be found online although he will probably need a professional to deal with the formality's as all paperwork has to be translated by a registered translator also so the professional should be able to advise him once he knows his situation , here from the information you gave its simply not possible to be more precise .

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RichardCoeurdeLion
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Re: Did he have to pay inheritance tax?

Postby RichardCoeurdeLion » Sun Aug 13, 2017 2:32 pm

Thanks very much for taking the time to post that reply.

I'll pass the info onto him.

It sounds like he needs some to see a professional.

He does have a son who lives in UK.

He told me the property was sold for "a hundred and odd thousand"

He put the property in the hands of the company that do holiday lettings on the development and act as estate agents for people wishing to buy and sell.


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