Euro inheritance to UK Account

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I'm in need of advice for an inheritance cheque I received from Ireland (republic) The amount is in Euro and I have put the cheque into a Euro account with my bank (barclays) here in the UK. I'm wondering what's the best thing for me to do to get the best out of the money.

I have considered buying Dollars, opening ISA's, or moving it to my savings account but I'm confused by most of the jargon that goes with all of the options.

Can anyone advice me on what might be the best option. Thank you.

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  • Rich2808
    Rich2808 Posts: 1,332 Forumite
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    I got an Irish inheritance and opened a current account with AIB in Dublin. If you pay a euro cheque into a UK sterling account you will be hit by a currency weighting. A bit of a hassle on opening but you can then do online transfers as and when using cheaper providers. Not sure how easy it us to open euro accounts in the UK? Depends on how big the sum is?

    Given it's been subject to Irish inheritance - CAT - tax rules you cannot be taxed again by the UK authorities as there is a reciprocal arrangement. Did you have to pay Irish CAT (capital acquisitions tax) - it's brutal if you don't inherit from a parent. You only get 30k euro tax free for an inheritance from a relative and 15k euro from a non relative and then pay 33 per cent on the balance. And those limits are for life - so if you get another inheritance in the same group it's 33 per cent on the whole sum including houses which in some parts of rural Ireland are still unsellable.

    And people moan about IHT here.
  • digitalfingers
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    Thanks Rich. I have put the cheque into a Euro acct here in UK. The money I received is from the sale of my late fathers Property in Dublin (which sold for a pittance in comparison to the value it was worth at the time of my fathers passing) and was divided between 6 people, each receiving a nice amount to be fair. I owe a huge thank you to my Dad!! So if I put the money into my sterling acct, I'm going to see a rather large chunk of it disappear because of the the exchange rate. That's why I posted the initial question.

    Don't you need an Irish address for an Irish bank acct?
  • grey_gym_sock
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    So if I put the money into my sterling acct, I'm going to see a rather large chunk of it disappear because of the the exchange rate.

    do you mean that barclays charge a lot for currency conversions, so you will lose out compared to the current proper exchange rate? or that the euro is low relative to the pound now, so it's a bad time to make the exchange? because those are 2 very different issues.

    the answer to the first issue is to use some kind of currency specialist to make the exchange, instead of barclays. i dunno who, but i'm sure other posters can advise on that.

    the answer to the second issue is that really nobody knows whether the euro will rise or fall against the pound from here. it's lower than it used to be; but it doesn't follow that it will bounce back; it might fall further. so unless you have a need for euros (e.g. you plan to buy a property in a eurozone country), i'd be inclined to bite the bullet and convert the money into pounds now.
  • Rich2808
    Rich2808 Posts: 1,332 Forumite
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    edited 5 December 2015 at 5:30PM
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    Thanks Rich. I have put the cheque into a Euro acct here in UK. The money I received is from the sale of my late fathers Property in Dublin (which sold for a pittance in comparison to the value it was worth at the time of my fathers passing) and was divided between 6 people, each receiving a nice amount to be fair. I owe a huge thank you to my Dad!! So if I put the money into my sterling acct, I'm going to see a rather large chunk of it disappear because of the the exchange rate. That's why I posted the initial question.

    Don't you need an Irish address for an Irish bank acct?

    Yes you can open an account with a non resident address. But you need to open in branch and provide proof of ID and UK address - they will also want to know why you want the account. Here is a link to AIBs current account webpage but BOI, Ulster are also options - you could ask their UK arms for advice etc

    You will need to book an appt in advance. I opened my account with the AIB on O Connell street in Dublin - just depends what's easiest.

    If that's not practical you may just have to take the hit unless you can open a UK euro account.

    http://personal.aib.ie/our-products/current-accounts/personal-current-account

    And you can manage drawing down the funds when the exchange rates improve.
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