Inheritance Tax Allowances

[bernipops3]

One for El Cid please.

You kindly advised me on allowances for tax on an UK inheritance which our assessor is now working on. My husband and I were left equal shares by my husband's mother but we are being told that because I am not a direct descendant I am not entitled to the full 15,956 euros allowance only 7,993 euros and have been sent the following (apparently I come into Group III):-

Grupo Composición Reducción
I Descendientes y adoptados menores de
veintiún años
15.956,87 € + 3.990,72 € por cada año menos de veintiuno que
tenga el causahabiente, hasta un límite máximo de 47.858,59 €.
II Descendientes y adoptados de veintiuno o más
años, cónyuges, ascendientes y adoptantes
15.956,87 €.
III Colaterales de segundo y tercer grado,
ascendientes y descendientes por afinidad.
7.993,46 €.
IV Colaterales de cuarto grado, grados más
distantes y extraños. No habrá lugar a reducción.

Your advice has always been so spot on, I wondered if you have any thoughts on this please?

Thanks as always.

Bernipops

[El Cid]

I'm afraid that is correct. Your original question didn't give any details of the relationship.

Group 3 is:-

In laws and their descendant/ascendants
Step Children
Brothers and sisters
Cousins
Nieces and nephews
Aunts and uncles.

Sid

[chrissiehope]

Oops, Sid beat me to it !
Here it is anyway:

I can say that what you have been told, is, as far as I am aware, correct - my 2 step daughters are inheriting my late husband's half of our casa, and they are in Group 2 have a look at this site : http://spain.angloinfo.com/money/genera ... tance-tax/

[bernipops3]

Thanks for the confirmation. A bit disappointed (well very disappointed actually) but at least I am satisfied that our assessor has got it right.

Thanks again

Bernipops

[infoseeker]

I'm wondering how up to date Anglo Info is with its info on succession tax; it's still stating that there is a reduction of 99 % tax in Murcia, when in fact Murcia abolished its regional tax allowances last year.

[El Cid]

It's up to date on the national rules as they haven't changed for ages. The regional rules change frequently and many of these "info" sites cannot be relied upon for accurate data.

Sid