tangolima

MrBife

Stamp Duty is paid when there is a change of ownership of a property. It could perhaps have been avoided by 'gifting' the property to you, or your own children, a few years ago but then hindsight is always 20/20. Inheritance tax depends on the valuation (the rateable value not the resale value) but I am not sure why inheritance tax was paid in the UK and not in PT since it relates to a Portuguese asset. (Suggest you take this up with a PT based financial adviser). Tax once paid is unlikely to be reclaimable - as far as I can see you will have to rent or sell the property to get any kind of return on your inheritance.

tangolima

dmu

Hi, butting in from the France forum, since the same Inheritance Laws govern such matters here. The 40% inheritance tax is normal for a sibling, In France it's either 35% or 45% depending on the rateable value of the property and, in fact, must be paid to the French Tax Office via the Notary, wherever the heir lives. Who did you actually pay the Inheritance Tax to? Was the payee then going to transfer it to the Portuguese Notary dealing with the Succession or the Tax Office? I should make sure that everything is in order with the Portuguese Tax Office and that you won't find yourself receiving a demand from them! Inheritance Tax and Stamp Duty are set down by Law and IMO there's little chance of being refunded.
HTH
P.S. Many people in France are forced to sell inherited property in order to pay the high rate of Inheritance Tax, but they do have the option to refuse the inheritance if they prefer.

tangolima