Inheritance tax

[peteroldracer]

My brother has died and left a small inheritance, to be split with my other brother who lives in the UK. How should I deal with this tax-wise? Not until next year but getting in early! The sum has been paid into my UK bank account.

[El Cid]

Peter, as a brother the allowance is not good. You are classified as a Group 3 relative and none of the normally generous allowances apply. Sadly, this means you're liable for tax on the money, less an allowance of about €8000.

As it is a foreign asset, especially as it is cash, most Spaniards would "forget" to declare it. After 4 years, if Hacienda has not contacted them about it, statues of limitation apply. They would, of course, not transfer it into their Spanish bank.

Of course, as a law abiding Brit, I'm sure you would declare it on the relevant forms and pay the tax.

Sid

[firsttango]

Peter, as a brother the allowance is not good. You are classified as a Group 3 relative and none of the normally generous allowances apply. Sadly, this means you're liable for tax on the money, less an allowance of about €8000.

As it is a foreign asset, especially as it is cash, most Spaniards would "forget" to declare it. After 4 years, if Hacienda has not contacted them about it, statues of limitation apply. They would, of course, not transfer it into their Spanish bank.

Of course, as a law abiding Brit, I'm sure you would declare it on the relevant forms and pay the tax.

Sid

Beautifully worded

[peteroldracer]

It is less than £6500 so may be covered by the allowance…thanks Sid

[El Cid]

In which case it would be covered. Just spend it on a nice bike!

Sid

[costakid]

Peter, as a brother the allowance is not good. You are classified as a Group 3 relative and none of the normally generous allowances apply. Sadly, this means you're liable for tax on the money, less an allowance of about €8000.

As it is a foreign asset, especially as it is cash, most Spaniards would "forget" to declare it. After 4 years, if Hacienda has not contacted them about it, statues of limitation apply. They would, of course, not transfer it into their Spanish bank.

Of course, as a law abiding Brit, I'm sure you would declare it on the relevant forms and pay the tax.

Sid

I couldn’t have worded it better myself.

[peteroldracer]

Apart from trying to be an upright citizen…there is exchange of information about bank interest, so logically there will be same info about payments into a uk account.

[KKKaty]

I know someone who owes (owed) 25,000 tax from about 1999.

[costakid]

I know someone who owes (owed) 25,000 tax from about 1999.

Jesus Gil? Or was that 25 million?