Advice sought regarding inheritance tax, UK version

[ClearAsMud]

Lots of great answers and info on this. Thanks to all!

One further question:

Are there any complications if you receive inheritance from two (or more) deceased folk in the same tax year?

Let’s say you get two lots of inheritance that, by themselves don’t go over the limit, but when added together they do go over the limit.

I presume it doesn’t work like that and that one lot of inheritance has no tax bearing on another, but thought it pertinent to check. Can anyone clarify this?

Inheritance tax is not handled by tax year but handled within the 10-month period immediately following the decedent's death (technically, in the 10 months after the heir becomes aware of the death). The decedent's regular income-tax obligation is satisfied by filing a separate quasi-return (準確定申告) within four months of death.

Each inheritance is a separate event and each benefits from a separate basic deduction, although the basic deduction will be correspondingly smaller when there are fewer statutory heirs. Practical complications (i.e., more inconvenience) could arise if the assets of the first decedent haven't been transferred or if an inheritance-tax return hasn't been filed (if necessary) before the second death occurs.

[Tkydon]

Lots of great answers and info on this. Thanks to all!

One further question:

Are there any complications if you receive inheritance from two (or more) deceased folk in the same tax year?

Let’s say you get two lots of inheritance that, by themselves don’t go over the limit, but when added together they do go over the limit.

I presume it doesn’t work like that and that one lot of inheritance has no tax bearing on another, but thought it pertinent to check. Can anyone clarify this?

Inheritance tax is not handled by tax year but handled within the 10-month period immediately following the decedent's death (technically, in the 10 months after the heir becomes aware of the death). The decedent's regular income-tax obligation is satisfied by filing a separate quasi-return (準確定申告) within four months of death.

Each inheritance is a separate event and each benefits from a separate basic deduction, although the basic deduction will be correspondingly smaller when there are fewer statutory heirs. Practical complications (i.e., more inconvenience) could arise if the assets of the first decedent haven't been transferred or if an inheritance-tax return hasn't been filed (if necessary) before the second death occurs.

If the inheritances are involved in a Chain Succession, then there is a deduction if the Chain Succession happened with a 10 year period.

[Gareth]

Thanks for the reply! So nothing really to be concerned about. Excellent.

If the inheritances are involved in a Chain Succession, then there is a deduction if the Chain Succession happened with a 10 year period.

Thanks for the reply but sorry I don’t quite understand what you mean. Would it be possible to elaborate please? Thanks!

[Tkydon]

If the inheritances are involved in a Chain Succession, then there is a deduction if the Chain Succession happened with a 10 year period.

Thanks for the reply but sorry I don’t quite understand what you mean. Would it be possible to elaborate please? Thanks!

If say your father passed away and you mother inherited, and then, within 10 years you mother passed away, then your mother's inheritance then inherited by you is a Chain Succession , and subject to Chain Inheritance Deduction.

The calculation is complicated, but it has already been taxed, so won't be (fully) taxed again.