# Inheritance Tax



## wightprop (Aug 22, 2013)

We are tax resident in Spain and have lived here for seven years.
I own the majority share of a UK Company. If I die before my wife how much inheritance tax will she be liable for when she inherits?
Many thanks for any advice


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## extranjero (Nov 16, 2012)

How long is a piece of string? Depends how many assets you have, and if you filled in the obligatory 720 assets form this year, The Spanish tax office will know exactly what you're worth! IHT-that most dreaded of taxes-is due on all your worldwide assets, regardless of whether you have made both UK and/pr Spanish wills.There is a government allowance approx 16000 e which won't go far. As you have lived in Spain for seven years I presume you have been making your tax returns, so, as tax resident you will be eligible for the regional allowance which varies from a large % to zero as at least one region has abolished it. However the discount comes with conditions-the property has to be maintained for 10 years otherwise all the tax will be payable.Most people on being bereaved go back to UK or downsize, so that could be a problem.
There is a firm which specialises in putting properties into ownership in a company in UK so that when a person dies, it is still owned by the company, so no IHT! However there are costs associated with it, so you have to research it. See all the local press.
There is so much info online-if you google you will be overwhelmed; I would also ask your accountant, although you can ask 10 and they will all come up with a different answer!


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## wightprop (Aug 22, 2013)

Thanks extranjero.
I have asked around and, as you say, every professional opinion is different. I am now seriously thinking of moving back to the UK permanently as the IHT burden on my wife, who is several years younger than me would be too much.
Shame really as we love it here and contribute to the local economy, but it seems as though the system is geared towards self destruction. I don't mind paying a reasonable amount of tax but IHT simply does not encourage long term investment in what, in my opinion, is the best country in Europe.


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## CapnBilly (Jun 7, 2011)

You should seek a professional opinion before making your decision. I think you live in Andalucia, and, providing the net worth of the recipient is less than €400k, and the value of the inheritance is below €175k, then there's virtually no IHT. If its over this value, then it's quite high. That doesn't mean it won't change though. Murcia used to give generous allowances, but they were abolished last month. Conversely, Valencia increased the allowances for residents, but reduced the relief on the taxable amount from 99% to 75%.


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## extranjero (Nov 16, 2012)

This system of regional allowances is very unfair;how can Valencia and other regions be so generous, while those in Murcia only have the very mean state allowance, which hasn't been increased for years?
There needs to be a decent state allowance leaving regional allowances unnecessary, and these should not have conditions such as retaining the property for 10 years. So what are those residents of Murcia supposed to do? Even a modest house and assets will now incur hefty IHT fees! All the ways of mitigating this tax have serious flaws.
All taxes are too important to be left to the whims of regions -it should be for the government to decide.


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## wightprop (Aug 22, 2013)

Extranjero, The whole system is flawed. Why would any country actively discourage foreign investment ?
All we ever wanted was to live here on the rent from our two houses and a dividend from my company.
We contribute to the local economy, we pay our income tax and we pay our social security and they want to take an inordinate amount of tax from something that we have spent our lives working for in the UK.
Spanish politicians must have enormous feet, they keep shooting themselves in the foot and still find plenty of room for the next bullet.
So so sad,


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## extranjero (Nov 16, 2012)

Yes, the golden geese are flying home!


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