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HMRC internal manual

Inheritance Tax Manual

HM Revenue & Customs
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Foreign property: Double Taxation Conventions: certificate of tax paid: Netherlands

Where the transferor was, according to the Double Taxation Convention:

  • domiciled in the Netherlands, and
  • had not been domiciled in the UK within the 10 years of the transfer.

the UK must waive its taxing rights on any asset the transferor held that was within Article 8, even if it was situated in the UK. You should consult Technical about any proof of taxation in the Netherlands.

When a double taxation credit is due under Article 13, you may allow the amount claimed in IHT400 provisionally. But the case should not be closed until the payment of Dutch succession duty has been certified by the Dutch authorities. There is no special form for a certificate. You should tell the taxpayer or agent to obtain a statement from the Dutch authorities showing:

  • (a) the total tax attributable to the property in question (excluding any interest and penalties)
  • (b) the property and its value on which that tax was charged
  • (c) the date of payment of that tax
  • (d) that the tax was computed in accordance with the Convention
  • (e) that the tax is final
  • (f) that no application for a refund of tax is now pending or authorised and that, if a refund is made, due notice will be given to this Office.

The Dutch authorities will send the certificate in the form of a letter direct to us.

If you have any difficulty calculating the tax attributable to property, after you have received the certificate, you should ask for advice from Technical.

The credit given cannot be more than the amount of UK Inheritance tax payable on the property concerned.

Certificate of IHT paid

A certificate of IHT paid will also be a letter that we will issue if the taxpayer or agent requests one. It is prepared by Technical and sent to the Dutch authorities, with a copy to the applicant. If there is any adjustment of tax after a certificate has been issued, refer the file back to Technical to issue an amending certificate.

You should also refer the file to Technical if the taxpayer or agent asks for proof that the assets are subject to Inheritance tax in the UK in connection with Article 8.