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-   -   Inheritance Tax (https://britishexpats.com/forum/usa-57/inheritance-tax-924833/)

PetrifiedExPat May 9th 2019 12:16 pm

Inheritance Tax
 
Hi all,

I spoke with my Mum yesterday who mentioned she chatted to her financial advisor about inheritance tax for yearly gifts she sends to me and my wife if she passes within 7 years. The amounts are not huge, but also not insignificant (think 5 figures).

If she passes, will HMRC collect the tax owed from her estate or me through the IRS?

Tx,

H

Rete May 9th 2019 1:27 pm

Re: Inheritance Tax
 
How can HMRC, a British agency collect through a US agency - IRS?

durham_lad May 9th 2019 1:29 pm

Re: Inheritance Tax
 
HMRC will collect any tax owed from her estate. The executor should complete the relevant IHT form. It is a simple enough form to understand.

https://www.gov.uk/government/public...on-iht205-2011


durham_lad May 9th 2019 1:32 pm

Re: Inheritance Tax
 

Originally Posted by Rete (Post 12681480)
How can HMRC, a British agency collect through a US agency - IRS?

suppose taxes were owed on £100k, then when her house and property are sold the taxes will be collected by HMRC on the proceeds of the sale before they are distributed to her heirs.

Rete May 9th 2019 1:37 pm

Re: Inheritance Tax
 

Originally Posted by durham_lad (Post 12681486)

suppose taxes were owed on £100k, then when her house and property are sold the taxes will be collected by HMRC on the proceeds of the sale before they are distributed to her heirs.

Are you telling me that HMRC will then turn the taxes paid over to the IRS?

durham_lad May 9th 2019 2:23 pm

Re: Inheritance Tax
 

Originally Posted by Rete (Post 12681489)
Are you telling me that HMRC will then turn the taxes paid over to the IRS?

Why would they? unless I have misunderstood the op the mother lives in the UK so any taxes she pays including inheritance tax is due to HMRC not to the IRS.

The op is asking if HMRC will come after him in the USA for any taxes due on the money he was gifted during his mother’s lifetime (the last 7 years of her life)



Rete May 9th 2019 2:53 pm

Re: Inheritance Tax
 

Originally Posted by durham_lad (Post 12681513)

Why would they? unless I have misunderstood the op the mother lives in the UK so any taxes she pays including inheritance tax is due to HMRC not to the IRS.

The op is asking if HMRC will come after him in the USA for any taxes due on the money he was gifted during his mother’s lifetime (the last 7 years of her life)




Then why are you inferring that my original statement was incorrect? see post #2 Man, you are confusing me.

durham_lad May 9th 2019 3:13 pm

Re: Inheritance Tax
 

Originally Posted by Rete (Post 12681534)
Then why are you inferring that my original statement was incorrect? see post #2 Man, you are confusing me.


Originally Posted by Rete (Post 12681480)
How can HMRC, a British agency collect through a US agency - IRS?


sorry, I misunderstood as post 2 was a question not a statement.

You didn’t explain how HMRC would collect the tax, so mistakenly I took your question to be asking how the taxes would be collected.

Rete May 9th 2019 3:15 pm

Re: Inheritance Tax
 

Originally Posted by durham_lad (Post 12681552)




sorry, I misunderstood as post 2 was a question not at statement.

You didn’t explain how HMRC would collect the tax, so mistakenly I took your question to be asking how the taxes would be collected.

Have to start using the :sarcasm: similie

MidAtlantic May 9th 2019 4:01 pm

Re: Inheritance Tax
 

Originally Posted by PetrifiedExPat (Post 12681431)
Hi all,

I spoke with my Mum yesterday who mentioned she chatted to her financial advisor about inheritance tax for yearly gifts she sends to me and my wife if she passes within 7 years. The amounts are not huge, but also not insignificant (think 5 figures).

If she passes, will HMRC collect the tax owed from her estate or me through the IRS?

Tx,

H

Not what you asked, but you should also consider the need to report receipt of the gifts to the IRS: https://www.irs.gov/businesses/gifts...foreign-person

PetrifiedExPat May 9th 2019 5:49 pm

Re: Inheritance Tax
 
Thank you, all.

No need to report for me, its not enough!

OK, it seems like the estate pays, which is fine.


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