¿Does the beneficiary of an inheritance recieved in Scotland, but living Domiciled in another European country

Question

have to pay Death Duties in Britain,(or Scotland)?

I can`t seem to get a clear answer from Lawyers!
There does seem to be rather a muddle still existing between European countries on matters of Law between them. Hence the confusion I`ve had over the whole of this matter.!

Answer 1

the question is very hard to under stand
if the benificary lives in scotland and the estate is in spain the the spanish rule of law applies and any money the benificary gets will have been taxed at the spanish rate whatever it may be.
so you will not be expected to pay again in the uk it may ahve been the case years ago but it is know the EU AND IF YOU PAY TAX IN ONE COUNTRY WITHIN THE EU that is it

Answer 2

Where the beneficiary lives is irrelevant. Inheritance tax (IHT) is due on the deceased's estate, it is that estate that is taxable, but generally comes out of the pocket of the beneficiary as the deceased is dead. Therefore the IHT is calculated on the estate of the deceased in accordance with IHT laws in the country where the deceased was domiciled. Assuming the deceased was based in Scotland then yes IHT will be due on some of the estate (some will be free, I think the limit is 280k for this year) the rest will be taxable at 40%. If you received property though and the only way you can pay is by selling the property and you don't want to you can arrange to pay over 10 yrs

Answer 3

Yes, but Death Duties are applied to the whole value of the estate of the deceased. So, you may not find out just how much of the money will come to you until after probate is granted. Dependent on the value of the estate this could take a few weeks or many months!

Answer 4

Yes, because it is the estate of the deceased that pays the duties not the beneficiaries who are paid out of the net remaining. I assume that by "received in Scotland" you mean that the estate is Scottish.

Answer 5

Sue, y'are posting a no. of legalistic questions which can best be answered by a user with knowledge of law.

Answer 6

Fraid so!