Inheriting A Small Sum – Do I Need To Pay IHT

From our tax advisor Philip Carroll.

Inheriting a small sum – will I have to pay Inheritance Tax?

It depends where you live, as inheritance tax can be varied by the region where you live. However, it’s unlikely on a small amount, as the minimum allowance you would receive is the state allowance, which from an ascendant like grandparent is up to €15,956. Same for descendants (children incl. adopted) or spouses.

If the amount I inherit is over the state allowance, but I keep it in a UK account – do I still need to declare in Spain?

Technically you need to declare an inheritance within 6 months of the death, although you can apply for an extension of a further 6 months before the end of the first 5 months. If you declare then there is a fine of 5% for every 3 months that you are late, up to 12 months, and then a further 5% per annum after that.

Please note: The information provided is based upon our understanding of current legislation. It is not legal advice but is provided freely to enable you to be properly informed. We recommend that if you are considering taking action, you should seek professional advice.