Paying the least to the TAX monster, I mean Man.

fooddestroyer

First post - so I hope you can help!

My wife is a US Citizen who now lives in Ireland with me and needs advice on paying tax (or as little as possible!).

She is about to receive some dollars (expected $40000) from her family inheritance, into an existing US bank account.

As I have dual citizenship of Ireland and UK, with live bank accounts in both North and South (with her name on a joint UK account), we were wondering if what the BEST thing would be to do about the following:

1. What is the best way to avoid large amounts of tax, keeping everything TOTALLY LEGAL of course?

2. As regards investing say,.. $5-10k, where or what would you recommend to look?

Thanks for all your help in this matter.

System

You don't say where you actually reside and consider yourself domiciled so we can't answer your question. If you are normally resident in Northern Ireland then then HMRC are the ones you need to keep incontact with.

This being the case your wife will need to declare any interest she makes on the inheritance as foreign income and not the actual inheritance itself.

As you yourself have a Southern Irish bank account you too should be declaring as foreign income any interest you make on those savings.

I'm not sure about where to invest some of the capital but someone will be along later to help I'm sure.:D

Cook_County

fooddestroyer wrote: »

First post - so I hope you can help!

My wife is a US Citizen who now lives in Ireland with me and needs advice on paying tax (or as little as possible!).

She is about to receive some dollars (expected $40000) from her family inheritance, into an existing US bank account.

As I have dual citizenship of Ireland and UK, with live bank accounts in both North and South (with her name on a joint UK account), we were wondering if what the BEST thing would be to do about the following:

1. What is the best way to avoid large amounts of tax, keeping everything TOTALLY LEGAL of course?




2. As regards investing say,.. $5-10k, where or what would you recommend to look?

Thanks for all your help in this matter.

As a US citizen she is of course subject to US tax for ever and doubtless filing annual US income tax returns and FBARS.

She will want a structure that minimizes US & Irish tax and this is tricky to talk about without knowing what else she has?

moonrakerz

fooddestroyer wrote: »

1. What is the best way to avoid large amounts of tax, keeping everything TOTALLY LEGAL of course?

Tax avoidance is legal - Tax evasion isn't !

SeniorSam

fooddestroyer wrote: »

First post - so I hope you can help!

My wife is a US Citizen who now lives in Ireland with me and needs advice on paying tax (or as little as possible!).

She is about to receive some dollars (expected $40000) from her family inheritance, into an existing US bank account.

As I have dual citizenship of Ireland and UK, with live bank accounts in both North and South (with her name on a joint UK account), we were wondering if what the BEST thing would be to do about the following:

1. What is the best way to avoid large amounts of tax, keeping everything TOTALLY LEGAL of course?

2. As regards investing say,.. $5-10k, where or what would you recommend to look?

Thanks for all your help in this matter.

.. there is no tax on the money she inherits. Any and all 'income' from investments needs to be delcared, but you have not indicated what you want the invested capital to do for you?

If in an investment bond, you cn take withdrawals that are non taxable to a basic rate taxpayer ( in fact they are tax deferred) so only higher rate taxpayers would pay the difference between lower rate and higher rate tax on encashment or taking more that 5% per annum.

With markets improving as they are, there are good opportunities to invest but I would suggest you obtain the services of a good IFA before making any commitment .

Good luck

Sam

Cook_County

SeniorSam wrote: »

.. there is no tax on the money she inherits. Any and all 'income' from investments needs to be delcared, but you have not indicated what you want the invested capital to do for you?

If in an investment bond, you cn take withdrawals that are non taxable to a basic rate taxpayer ( in fact they are tax deferred) so only higher rate taxpayers would pay the difference between lower rate and higher rate tax on encashment or taking more that 5% per annum.

With markets improving as they are, there are good opportunities to invest but I would suggest you obtain the services of a good IFA before making any commitment .

Good luck

Sam

An investment bond woul be absolutely useless for her as she is a US citizen so she pay US tax on the underlying growth.

She needs a specialist in US/Irish tax rules.

fooddestroyer

Pam17 wrote: »

You don't say where you actually reside and consider yourself domiciled so we can't answer your question. If you are normally resident in Northern Ireland then then HMRC are the ones you need to keep incontact with.

This being the case your wife will need to declare any interest she makes on the inheritance as foreign income and not the actual inheritance itself.

As you yourself have a Southern Irish bank account you too should be declaring as foreign income any interest you make on those savings.

I'm not sure about where to invest some of the capital but someone will be along later to help I'm sure.:D

I have addresses in both North and southern ireland and I have dual citizenship of Ireland and GB (Northern Ireland)

fooddestroyer

Cook_County wrote: »

As a US citizen she is of course subject to US tax for ever and doubtless filing annual US income tax returns and FBARS.

She will want a structure that minimizes US & Irish tax and this is tricky to talk about without knowing what else she has?

She has !!!!!! all to be honest, and the same for the last few years..