Hello,
I am currently doing the tax returns for 20/21 and I have just realised that there may be a possible problem with UK IHT. The situation is this: my wife had an uncle in France who died last year. He left her around 26000EUR (on which she duly paid French IHT). The full value of his estate was ~250TEUR and I *think* (but then I may be utterly and totally wrong ) that the 26,000EUR does not attract any IHT here in UK?!
The other thing is basically the same situation but it's not her uncle but her mother who sadly is poorly and... Anyway, here the situation is different in so much as her mother's estate (all is located in France) will be above 400TEUR and my wife is the only child, actually the only surviving member of family. Assuming it's 450TEUR, assuming my mother-in-law leaves all to my wife and assuming the EUR exchange rate is 1.2 (just so that I can create a spreadsheet to be prepared), is my understanding correct that this would basically attract British IHT of ((450,000/1.2)-325,000)*40%?
Additionally my wife will of course have to pay French IHT which we have good idea about, having just gone through the whole process . Secondary question is whether she can part or all of this payment use as offset against British IHT?
Thanks for any hints, explanations or pointers to further information. Cheers Mick
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