Forums » Discussions » Who has to pay inheritance tax?
If you’re a spouse or civil partner taking an inheritance from your deceased spouse or civil partner, you don’t pay inheritance tax.
Everybody else is liable for inheritance tax, your children are most at risk.
How much is inheritance tax?
If the value of the asset you receive is under your threshold (see below), it’s tax-free. Anything above your threshold is taxed at a whopping 33%. Let’s look at it from the children’s point of view:
You and your sister will inherit assets of €1.5m from your parents. Remember assets comprise anything of value so property, jewellery, cars, savings, investment etc.
Assuming you haven’t received any gifts from your parents in your lifetime, you face an inheritance tax bill of €136,950 each!
And this €136,950 will have to be paid in cash to the Revenue quick smart.
• Should you inherit between January and August, you have to pay by October 31st. • If you inherit between September and December, you have to pay the inheritance tax bill by 31st August the following year.
If you can’t pay, Revenue charges penalties and interest until you can. The best you can hope for is some sort of deferred arrangement but eventually you will have to pony up almost €140k each.
Read More: What is a PRSA?