Capital Acquisitions Tax Consolidation Act 2003 section 45AA

Liability of certain persons in respect of non-resident beneficiaries

Section 45AA deals with the liability of personal representatives and solicitors to pay inheritance tax on behalf of non-resident beneficiaries who inherit property from an Irish estate.

• Where beneficiaries of an estate are not resident in the State, and the personal representatives (or a solicitor appointed under section 48(10)) are Irish resident, Revenue may assess and charge those personal representatives or that solicitor for the inheritance tax owed by the non-resident beneficiaries.
• This liability does not apply where the tax arises solely because a non-resident beneficiary failed to disclose prior taxable gifts or inheritances, provided the personal representative or solicitor made reasonable enquiries and acted in good faith.
• The personal representative or solicitor is only liable to the extent that they have control of the relevant property, or would have had such control but for their own neglect or default.
• The personal representative or solicitor is entitled to retain sufficient property to pay the tax owed by the non-resident beneficiary and has the power to raise the tax amount (plus associated expenses) by selling, mortgaging or placing a terminable charge on the property.