IHT UK GER

[Bear2020]

Hi! Thanks in advance for your answers.

Questions for the following cases:
A) Would I have to pay (any) tax in the UK in the following cases?

B) would I have to declare the inherited property/ income in the UK?

I’m a UK resident. German citizen.

Case 1:
I own a property in Germany. It is rented and the annual income is around 17k€. I declare it in Germany with a tax declaration.

Case 2:
I inherit a property (real estate) in Germany from my mum’s uncle.

Case 3:
I inherit a property (real estate) in Germany from my mum.

Bonus case:
In case I pass away and the property (real estate) I own in Germany would be inherited by my brother (German Citizen & resident), would my brother have to pay IHT in the UK?

[jerome.lane]

Case 1 - Income tax on annual basis and IHT if deemed domiciled. CGT if sell subject to remittance basis rules.
Case 2 - Income tax if let and IHT if deemed domiciled. CGT if sell subject to remittance basis rules.
Case 3 - same as 2.
Bonus case - no your brother wouldn't but your estate might if you're deemed domiciled.

[Bear2020]

Hi Jerome.lane,

Many thanks for the quick response. As you might have expected - I've some follow up questions to find out if I'm deemed domiciled.

I looked at the HRMC website and "Condition A or B" are not met (I've been in the UK for 6 years - not 15 out of 20 tax years) neither born, domicile or origin. (I've been resident in 2017/18 and later but all 3 points must apply, I presume)

Would that assessment make sense for you?

Is there a way of breaking up the years counting for deemed domicile status e.g. living abroad for a certain amount of time?

Many thanks (again)!