IHTM28101 - Liabilities: investigating liabilities: deduction for tax debts in the Republic of Ireland

If the deceased died owing tax in the Republic of Ireland, you should allow a deduction against the free estate for any tax that has actually been paid to the Irish authorities provided the deceased

• was domiciled in the United Kingdom, and
• had no assets in the Republic of Ireland.

Where, in these circumstances, the deceased also has assets in a third country, you should apportion the tax debts.

If a deduction is claimed for any ‘Probate Tax’ paid in the Republic of Ireland, you must refer the matter to Technical for advice. This tax, which is paid by the executors or administrators of an estate, is not covered by our Double Taxation Convention with the Republic of Ireland.