Cross Border Taxation

[Fridashed]

Can HMRC impose Inheritance Tax on a Guernsey Resident who is a Guernsey Tax Domicile, with regard to immovable property received by testamentary disposition (the deceased was UK domiciled).

[maths]

As the deceased was UK domiciled UK IHT is levied on his/her worldwide estate including immovable property included in such estate wherever located.

Normally IHT on UK property in an estate is borne by the so-called residuary legatees (unless otherwise provided for in the deceased's will).

The UK IHT on property situated abroad is a charge on that property

[Fridashed]

can HMRC enforce the payment of the I.T on said Guernsey Tax Resident(domicile)

[maths]

If the immoveable property is situated outside the UK and the executors discharge the IHT liability in respect thereof then they (ie executors) have the right to recover that IHT payment from the person inheriting that property.

They will simply not transfer the property to the beneficiary until he/she pays over the IHT to the executors.

It is not a matter for HMRC, but the executors. HMRC's involvement would arise where for some reason the executors failed to discharge the IHT for which they are liable and HMRC then sought to collect it.

[AGoodman]

Everything maths said but also note that the UK/Guernsey Governments have an agreement to collect each others taxes (Art 27 of the DTT).

The executors are primarily liable but anybody else who receives the property or proceeds of the estate is also liable for unpaid IHT.

[maths]

Does the DTA re collection/enforcement apply to IHT?

[pawncob]

It doesn't appear so.
https://www.gov.uk/government/publications/guernsey-tax-treaties