Germany-UK cross border inheritance tax Guide
Ultimo aggiornamento: 30 settembre 2025
Germany × UK: Inheritance & Gift Tax — No Treaty
There is currently nessun trattato bilaterale sull'imposta di successione/donazione between Germany and the United Kingdom. Relief from double taxation is achieved via UK unilateral relief under IHTA 1984 s159 (HMRC practice) and § 21 ErbStG della Germania credit for foreign death duties on foreign-situs assets. UK domicile/deemed-domicile rules remain pivotal.
No DE–UK IHT treaty exists; income/capital gains treaties are separate and do not govern inheritance/gift taxes.
In sintesi
No DE–UK IHT treaty
- Double tax is mitigated via UK unilateral relief e § 21 ErbStG on the German side.
- Income/CGT treaties exist, but non for IHT/ErbSt.
Key mechanics
- UK: Credit under IHTA84 s159 where the same property is taxed overseas.
- Germania: § 21 ErbStG credits foreign tax on estero-sito assets (timing/amount caps; per-state computation).
Quali tasse possono mordere?
| Paese | Tassa e trigger | Punti salienti dell'ambito di applicazione |
|---|---|---|
| United Kingdom | Inheritance Tax (IHT) on death/lifetime transfers | Worldwide assets if domiciled/deemed domiciled; otherwise typically UK-situs assets only. |
| Germania | Erbschaftsteuer/Schenkungsteuer on acquisitions by the heir/donee | Worldwide if decedent or heir is a German resident (Inländer); otherwise German-situs assets. |
Relief in practice: UK unilateral & § 21 ErbStG
- UK unilateral relief (IHTA84 s159): HMRC may allow a credito for foreign death duties on the same property where no treaty exists (limits & evidence apply).
- Germany § 21 ErbStG credit: Germany credits foreign tax on foreign-situs assets; if multiple states are involved, compute per state; German IHT on that foreign asset must arise within 5 years of the foreign tax.
La documentazione è importante: valuations, situs evidence, foreign assessments and proof of payment drive credit capacity on both sides.
Driver Situs (livello alto)
| Patrimonio | Situs (tipico) | Commenti |
|---|---|---|
| Beni immobili | Dove si trova l'immobile | Primary taxing right usually at situs. |
| Beni mobili materiali | Posizione fisica al decesso/trasferimento | Keep inventory/location proofs. |
| Crediti e depositi bancari | Sede del debitore (banca) | UK often treats UK bank claims as UK-situs; evidence required. |
| Azioni / titoli | Luogo di costituzione | UK plc → UK-situs; German GmbH → German-situs. |
Worked example (numbers)
- Deceduto: UK-domiciled, dies resident in the UK.
- Erede: Child, resident in Germany (Inländer) at the date of death.
- Estate assets:
- UK-situs listed shares: £2,000,000
- German rental property: €1,000,000 (assume ≈ £850,000 for illustration)
- Ipotesi (solo a titolo illustrativo): ignore reliefs beyond UK NRB £325k; German Class I allowance €400k; illustrative German effective rate 19% on taxable base.
UK IHT @ 40% ≈ £670,000
Less allowance (≈ €400k → ≈ £340k) ⇒ ~£2,510,000 taxable
Apply illustrative effective rate 19% ⇒ German gross tax ≈ £476,900
If German tax attributable to the UK shares ≈ £380,000 (subset of £476,900),
credit allowed ≤ min(£670,000 UK IHT, £380,000 German tax on UK shares) = £380,000.
⇒ German net on UK shares: £0 (capped by German portion).
On DE property: no foreign tax paid ⇒ German tax on that slice remains due (≈ £96,900 in this illustration).
Here, UK taxes the UK shares; Germany also taxes them — but Germany already credited UK tax under § 21.
In der Praxis entsteht häufig keine zusätzliche UK-Gutschrift, da die Anrechnung zuerst in DE greift.
This is an illustrativo computation (rounded; ignores spouse/charity/business reliefs, debts, FX formalities, valuations). Actual outcomes depend on precise values, allowances, reliefs (e.g., UK Business/Agri Property Relief), debts, timing, and filings.
UK domicile → residency reform watch
The UK is reforming its non-dom framework from April 2025, potentially shifting IHT from a domicile-based to a more residence-based test. Model scenarios under both regimes before sizeable transfers; track HMRC updates.
Lista di controllo per la pianificazione (nessuna consulenza legale/fiscale)
- Map assets by situs (UK vs. DE) and type; identify overlaps likely to trigger double tax.
- Compute credits: UK unilateral relief (same property) and German § 21 credit (foreign-situs assets; 5-year timing).
- UK status: domicile/deemed-domicile today vs. 2025 residence reform scenarios; model any “tail”.
- Carta del file: valuations at death, situs evidence, foreign return/assessment and payment proofs.
- Sequence: consider lifetime gifts, allowances, and German aggregation/look-back.
FAQ
Is there a Germany–UK inheritance/gift tax treaty?
No. Relief is via UK unilateral relief and Germany’s § 21 ErbStG foreign-tax credit.
How does § 21 ErbStG work?
Germany credits foreign death duty on estero-sito assets; compute per state; German IHT on that asset must arise within 5 years of the foreign tax.
How does UK unilateral relief work?
Where the same property is taxed abroad and in the UK, HMRC may allow a credit under IHTA 1984 s159 (see HMRC guidance and manuals).
Do income/capital gains treaties help?
They do not govern inheritance/gift tax; the DE–UK income/capital gains treaty is separate.
Parlate con noi
We build side-by-side UK/DE computations (credits, timing tests) and prepare credit-ready files.