Inheritance tax on joint british bank accounts
Jan 28th 2016, 9:44 am
#1
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Joined: Nov 2005
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Inheritance tax on joint british bank accounts
Hi Everyone
I think I am pretty well versed on Spain inherticance tax laws now thanks to this forum but I have one remaining question. Currently I hold joint banks accounts in Wales with my husband but we are Spanish tax residents. If my husband were to die, under the rules in Britian, the accounts would simply pass to me and be put solely in my name. My question is, how does the Spanish goverment regard these accounts once they are put into my name.
Are the accounts considered an inheritance from my husband? Would the spanish goverment make my pay inheritance on 50 percent of the account, since it was joint, or are they now simply my assests?
Many Thanks for your help with this.
I think I am pretty well versed on Spain inherticance tax laws now thanks to this forum but I have one remaining question. Currently I hold joint banks accounts in Wales with my husband but we are Spanish tax residents. If my husband were to die, under the rules in Britian, the accounts would simply pass to me and be put solely in my name. My question is, how does the Spanish goverment regard these accounts once they are put into my name.
Are the accounts considered an inheritance from my husband? Would the spanish goverment make my pay inheritance on 50 percent of the account, since it was joint, or are they now simply my assests?
Many Thanks for your help with this.
Jan 28th 2016, 9:55 am
#2
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Location: Costa Valencia
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Re: Inheritance tax on joint british bank accounts
I do not know the answer to your question but when my husband died here in Spain everything was dealt with using his will and not one person asked whether we had any assets or accounts in the UK. Granted there was only one account in the UK which was solely in my name but I was not asked at all as far as I can remember.
Rosemary
Rosemary
Jan 28th 2016, 10:22 am
#3
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Location: Ontinyent - Valencia region (campo)
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Re: Inheritance tax on joint british bank accounts
I do not know the answer to your question but when my husband died here in Spain everything was dealt with using his will and not one person asked whether we had any assets or accounts in the UK. Granted there was only one account in the UK which was solely in my name but I was not asked at all as far as I can remember.
Rosemary
Rosemary
You SHOULD take into account ALL of your husbands assets and then put these into the pot when calculating succession tax. That would mean that you inherit half of everything including the joint account.
As I say, I doubt this happens very often in reality unless large sums are involved.
Jan 28th 2016, 2:30 pm
#4
Joined: Jun 2006
Location: Granada Costa
Posts: 10,898
Re: Inheritance tax on joint british bank accounts
You're right. Most of the time UK assets are ignored, but if large then if they were declared on Form 720 it could be a problem.
Legally, the joint holding is liable to IHT and 50% of the balance would be taxable.
Sid
Legally, the joint holding is liable to IHT and 50% of the balance would be taxable.
Sid
Jan 28th 2016, 6:03 pm
#5
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Re: Inheritance tax on joint british bank accounts
So it's all down to how honest you are then!if they don't ask, aren't you meant to declare all the deceased's overseas assets for the IHT
Whe it comes to the 720, isn't the main reason it's hated so much that the Hacienda has a nice little check list for the IHT?
Whe it comes to the 720, isn't the main reason it's hated so much that the Hacienda has a nice little check list for the IHT?
Jan 28th 2016, 6:14 pm
#6
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Re: Inheritance tax on joint british bank accounts
Hi Everyone
I think I am pretty well versed on Spain inherticance tax laws now thanks to this forum but I have one remaining question. Currently I hold joint banks accounts in Wales with my husband but we are Spanish tax residents. If my husband were to die, under the rules in Britian, the accounts would simply pass to me and be put solely in my name. My question is, how does the Spanish goverment regard these accounts once they are put into my name.
Are the accounts considered an inheritance from my husband? Would the spanish goverment make my pay inheritance on 50 percent of the account, since it was joint, or are they now simply my assests?
Many Thanks for your help with this.
I think I am pretty well versed on Spain inherticance tax laws now thanks to this forum but I have one remaining question. Currently I hold joint banks accounts in Wales with my husband but we are Spanish tax residents. If my husband were to die, under the rules in Britian, the accounts would simply pass to me and be put solely in my name. My question is, how does the Spanish goverment regard these accounts once they are put into my name.
Are the accounts considered an inheritance from my husband? Would the spanish goverment make my pay inheritance on 50 percent of the account, since it was joint, or are they now simply my assests?
Many Thanks for your help with this.
Jan 28th 2016, 7:44 pm
#7
Joined: Jun 2006
Location: Granada Costa
Posts: 10,898
Re: Inheritance tax on joint british bank accounts
Sorry, that is not correct with regard to Spanish tax. IHT in the UK depends on domicile, but that does not affect the fact that you pay it in Spain on your worldwide inheritances or gifts if you are a resident of Spain.
The concept of domicile is a UK thing and does not exist in Spain.
The concept of domicile is a UK thing and does not exist in Spain.
Last edited by Fred James; Jan 28th 2016 at 7:46 pm.
Feb 6th 2016, 2:47 pm
#8
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Re: Inheritance tax on joint british bank accounts
thanks for all your responses.
