Gift & inheritance tax

Do you have a query on how to get things done in Andalucia, where to find things, who to call? Find out by posting and hear about others experiences.
blueskies
Newbie
Posts: 4
Joined: Thu Sep 10, 2020 1:02 pm
Location: Andalucia

Gift & inheritance tax

Postby blueskies » Sat Sep 19, 2020 9:59 am

Hello,

I have a few questions regarding the new inheritance & gift tax rules for a person originally from UK but now a fiscal resident living in Andalucia.

1. Inheritance from a UK trust where the settlor of the trust is a step-father - not exempt?

2. Inheritance from mother who lives in UK - exempt up to €1 million?

3a. A gift of £60,000 from mother who lives in UK - exempt up to €1 million?
3b. Can these funds be kept in either UK or Spain?
3c. After the initial gift exemption, would this amount be liable to Spanish tax in future years or would it always be exempt (as long as a gift deed was signed before a Spanish notary)?

4. Are there are plans for these beneficial exemptions to be changed in the near future?

Thanks for any advice/comments.

elusive
Andalucia Guru
Posts: 2291
Joined: Sat Apr 07, 2012 11:49 am
Location: East of Malaga

Re: Gift & inheritance tax

Postby elusive » Mon Sep 21, 2020 7:19 pm

3a
From what ive read its exempt aslong a gift deed is signed as you mention below. Same for 2

3B i see no reason why the funds cant be held in the uk but inorder to do that you would need to declare the account the money is held in on the 720 overseas asset declaration form.and also declare any intrest that is made off it on your spanish rax return.

3c i wouldnt think so as you pay the gift tax and that's it

4 the 1 mill exemption is quite a recent thing last couple of years maybe so i wouldnt expect new changes.

El cid is your expert on this. Hopefully he can answer the other questions or put me right if needed!

blueskies
Newbie
Posts: 4
Joined: Thu Sep 10, 2020 1:02 pm
Location: Andalucia

Re: Gift & inheritance tax

Postby blueskies » Tue Sep 22, 2020 9:44 am

Thank you Elusive.

El Cid
Andalucia Guru
Posts: 15043
Joined: Sun Oct 24, 2004 10:42 pm
Location: La Herradura, Costa Tropical, Granada

Re: Gift & inheritance tax

Postby El Cid » Tue Sep 22, 2020 10:09 am

Elusive has answered most of your questions.

Sadly, any gifts or bequests to or from "step" relatives are treated the same as non relatives so only the basic state allowances apply. The bequest from your mother would attract the full allowance.

Sid

elusive
Andalucia Guru
Posts: 2291
Joined: Sat Apr 07, 2012 11:49 am
Location: East of Malaga

Re: Gift & inheritance tax

Postby elusive » Tue Sep 22, 2020 12:58 pm

Your welcome. Thanks cid


Who is online

Users browsing this forum: Bing [Bot] and 7 guests