How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask TonyTax Your Own Question
TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15946
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
13905389
Type Your Tax Question Here...
TonyTax is online now

I am a PhD student in Edinburgh and have a dutch

Customer Question

Hello,
I am a PhD student in Edinburgh and have a dutch passport. My mother and grandfather passed away last year. They were resident in the Netherlands and Germany respectively. I inherit from both and pay inherinacte tax in those countries. Am I also liable to pay inheritance tax in the UK? Neither of them had any possessions in the UK.
Many thanks in advance.
Submitted: 1 year ago.
Category: Tax
Customer: replied 1 year ago.
For clarity: my grandfather and mother were both German nationals
I've been a student in the UK for 7 years. First in London. Since 3 years in Edinburgh for my PhD.
Expert:  TonyTax replied 1 year ago.
Hi. Recipients of gifts or inheritances such as yours pay no tax on them in the UK. You may have to pay UK tax if you invest any of the inheritance in the UK and earn income such as bank interest but only if your income exceeds the personal allowance which is currently £10,600. I hope this helps but let me know if you have any further questions.
Expert:  TonyTax replied 1 year ago.
Hi.
I'm just following up to find out if my answer helped or if you have any further questions.
Customer: replied 1 year ago.
I'm not sure if you can help me with this more complex issue on cross-border inheritance tax, but here is the situation:a) My grandfather passed away in Germany. He was a German national and had been living there for over 60 years. He had property in both the Netherlands and Germany.b) My mother passed away one month afterwards. She permanently lived in the Netherlands. As she was alive at the time of his death, she inherited 50% of my grandfathers estate. This is taxed in Germany.c) I accepted my mothers will which was drawn up in the Netherlands. As outlined above, I've been a student in the UK for 7 years. I am a Dutch national, but not registered as living there permanently. I do have dutch social security number etc.
In the UK I am not paying taxes as I don't have an income other than the tax-exempt PhD stipendQUESTION: Am I correct in assuming that:
(A) my mother pays inheritance tax in Germany upon receiving my grandfathers inheritance
(B) I pay inheritance tax in the Netherlands upon receiving my mother's inheritanceOR does the fact that she died whilst the inheritance process was ongoing affect me in the sense that I have to pay inheritance tax also in Germany (it seems unreasonable to have to pay a third time, but is that a possibility ?
I am just trying to figure out what is going to happen.
Expert:  TonyTax replied 1 year ago.
None of what you have just posted changes my answer. You asked about UK IHT and I answered it: Recipients of gifts or inheritances such as yours pay no tax on them in the UK. Neither of your parents will have an IHT liability in the UK so long as they had no UK assets in excess of £325,000. You may have to pay UK tax if you invest any of the inheritance in the UK and earn income such as bank interest but only if your income exceeds the personal allowance which is currently £10,600. This is a UK tax question site. I cannot help you with German or Dutch IHT. You should take appropriate advice.
TonyTax and other Tax Specialists are ready to help you
Customer: replied 1 year ago.
Ok, thank your very much for your help regarding my situation in the UK. That is definitely one thing less to worry about! Have a good evening.
Expert:  TonyTax replied 1 year ago.
Thanks.
Customer: replied 1 year ago.
Sorry, would you mind answering just one more question:Would any of the above change if, instead of being a student in the UK, I was working in the UK and paying income tax on my salary here?Many regards.
Expert:  TonyTax replied 1 year ago.
No, it wouldn't.