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Where Taxpayers and Advisers Meet

Uk or Germany for gift tax

Posts: 6
Joined: Wed Jun 26, 2019 8:43 pm

Uk or Germany for gift tax

Postby Carli » Fri Jun 28, 2019 11:26 pm

my parents recently died, and my brother, who I don't get along with at all, has been made executor of a German will, stating that their estate is to be divided up 50% to him, 25% each to me and my son.
I'm fine with this, except that my brother is demanding that my son and I declare all gifts over a 10 year period to him. I'm also fine with that, but the problem is that he refuses to disclose what gifts he has received. I know that my parents paid off a large mortgage for him £150,000 to £200,000, but this may have been more than 10 years ago. I am going by the German gift tax rules as I assume that's what's being applied.
Now my brother wants me to report all gifts and any money given to me to the UK tax people. I have a feeling that his large gift may be slightly short of the 10 years allowed by Germany, so he's trying to switch it to UK IHT laws, as it's only 7 years here. He also thinks that I have broken the law by not declaring these gifts on my self assesment, and tells me I might go to prison.
I think he is trying to intimidate me. I would be happier reporting gifts in the UK, where I live and file self assessment as the allowances are better.
I thought that as the money came from a German estate, it would be factored back into it the German estate.
Also, can I report the huge gift I assume he received, even though 7-10 years have passed? It lessens my parent's estate, He's trying to pretend it doesn't exist.

Posts: 3106
Joined: Sat Feb 01, 2014 3:26 pm

Re: Uk or Germany for gift tax

Postby bd6759 » Sat Jun 29, 2019 1:21 pm

Gifts are not taxable as income in the UK, and do not go on a self-assessment tax form.

As others have said, you need to speak with German lawyer to sort out the issues with our brother and your inheritance.

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