Inheriting from an Irish estate is unusual in one important respect: Ireland taxes the beneficiary, not the estate. Capital Acquisitions Tax (CAT) is charged at 33% on the value you receive above a tax-free threshold — €400,000 for a child, €40,000 for a sibling, niece or nephew. A UK resident inheriting Irish assets can be liable, and then converts euros into sterling to bring the money home.
Who this guide is for
This guide is for UK residents inheriting money, property or investments in the Republic of Ireland — often people with Irish parents or relatives, or those who moved across the Irish Sea and left family and assets behind. It covers how an Irish estate is settled, the Capital Acquisitions Tax you may owe, the UK position, and how to protect the sterling value of the inheritance as it moves.
The Ireland–UK corridor is one of the busiest in the inheritance world, helped by deep family ties and the Common Travel Area. It is also one where the tax can surprise people, because the way Ireland charges inheritance is the reverse of the UK. For the wider position, see our guide to receiving an EU inheritance as a UK resident; this page covers the Ireland-specific detail.
How does inheriting from an Irish estate work?
An Irish estate is administered much as in England: a personal representative — an executor named in the will, or an administrator where there is none — applies to the Probate Office for a grant of representation, gathers the assets, settles debts and distributes the estate. Where a grant has already been taken out in another country, it may need to be resealed or a fresh Irish grant obtained before Irish assets can be released.
Irish succession law also protects close family. Under the Succession Act 1965, a surviving spouse or civil partner has a legal right share — one-third of the estate where there are children, one-half where there are none — and a child can apply to the court for provision. This is not the continental forced heirship seen in Spain or France, but it does limit complete freedom to disinherit.
How does Irish inheritance tax (CAT) work?
Ireland’s Capital Acquisitions Tax is charged on the person who inherits, at a flat 33% on the value received above a lifetime tax-free threshold. The threshold depends on the relationship between the beneficiary and the deceased, and gifts and inheritances within the same group are added together over a lifetime.
| Group | Relationship to the deceased | Tax-free threshold |
|---|---|---|
| Group A | Child (including certain foster and step-children) | €400,000 |
| Group B | Sibling, niece, nephew, grandchild, lineal ancestor | €40,000 |
| Group C | All other relationships | €20,000 |
These thresholds have applied since 2 October 2024, and CAT above them is charged at 33%, according to Revenue. Because the tax falls on the beneficiary rather than the estate, two children inheriting the same estate can face very different bills depending on what each receives and what they have inherited before.
Does a UK resident pay Irish inheritance tax?
Often, yes. Irish CAT applies to all property situated in Ireland, and also where either the person giving or the person receiving the inheritance is resident or ordinarily resident in Ireland for tax purposes. A UK resident inheriting an Irish house or an Irish bank account is therefore usually within the charge, because the asset itself is in Ireland.
The filing deadline runs from the valuation date. Where that date falls between 1 January and 31 August, the return and payment are due by 31 October the same year; where it falls between 1 September and 31 December, by 31 October the following year. For a non-resident beneficiary receiving more than €20,000, an Irish-resident personal representative can be required to act as agent for the pay-and-file. Missing the date brings interest and penalties.
Do you also pay UK tax on an Irish inheritance?
The UK does not tax you simply for receiving an inheritance from Ireland, and there is no UK tax on moving the money into a UK account. UK inheritance tax can apply to the deceased’s estate, and since 6 April 2025 it turns on long-term UK residence rather than domicile, according to GOV.UK. Someone UK-resident for fewer than 10 of the previous 20 years is broadly outside the scope on non-UK assets.
Where both Irish CAT and UK inheritance tax could apply to the same assets, a UK–Ireland double taxation convention provides relief so the same value is not taxed twice. The interaction is intricate, so our guide to UK inheritance tax for expats explains the 2025 reform, and tax on money transferred to the UK from overseas covers the receiving side. This is general information, not tax guidance — confirm your position with a qualified adviser in both countries.
Ways to move an Irish inheritance to the UK compared
Once the Irish estate is settled and the euros are yours, the money still has to become sterling. The route you choose determines how much of the inheritance survives the conversion.
| Method | Typical exchange-rate margin | Forward contracts? | Best suited to |
|---|---|---|---|
| High-street bank | Around 3%–4% built into the rate | Rarely for private clients | Small, one-off amounts where convenience wins |
| Money-transfer app | Often under 1%, but limits and tiered pricing apply on large sums | No | Modest transfers within app limits |
| Specialist currency broker | Typically 0.2%–1%, tighter on larger sums | Yes — up to around 12 months ahead | Large inheritances with uncertain timing |
The margin is charged on the whole sum, so on a six-figure inheritance the gap between a bank rate and a broker rate is frequently measured in thousands of pounds. Our comparison of a currency broker versus a bank sets out the trade-offs, and who gives the best exchange rates on large transfers looks specifically at high-value sums.
What is the currency risk on a euro inheritance?
GBP/EUR moves constantly, driven largely by the interest-rate and growth differential between the Bank of England and the European Central Bank. For someone converting euros into pounds, a stronger euro means more sterling and a weaker euro means less. Neither direction can be predicted with confidence, which is exactly the problem when a large sum is involved.
The scale is easy to underestimate. A 2% swing in the exchange rate on a €400,000 inheritance is €8,000 — and rates can move by more than that over the months an Irish estate takes to settle. Because probate, valuation and CAT filing commonly run to several months, the rate at the moment you finally convert is rarely the rate you saw at the start. To follow the live number when you are ready, see converting a large amount of euros to pounds.
Worked example: converting a €400,000 inheritance
Suppose you inherit €400,000 from an Irish estate and expect to repatriate it once probate and the CAT return are complete, perhaps five months away. Using illustrative round rates:
- At an illustrative 1.14 euros to the pound, €400,000 converts to about £350,900.
- At 1.17, the same euros convert to about £341,900 — roughly £9,000 less.
- The only variable that changed is the exchange rate. The inheritance is identical.
A forward contract lets you fix a rate now for a conversion you settle later, turning that unknown sterling outcome into a known one. This is not a prediction that the rate will move in any particular direction — it removes the uncertainty entirely while the Irish paperwork is completed.
How can you protect the exchange rate?
- Spot transfer: convert at the live rate once the euros are cleared and yours to move.
- Forward contract: fix today’s rate for a conversion up to around 12 months ahead, usually for a modest deposit — see how a forward contract works.
- Market order: set a target rate and convert automatically if the market reaches it.
Forward contracts suit an inheritance because the timing is set by probate and the CAT calendar, not by the market. Fixing the rate early stops a favourable position slipping away while the estate is wound up.
What mistakes do beneficiaries make?
- Assuming there is no tax to pay: unlike the UK, CAT is the beneficiary’s responsibility, and a UK resident inheriting Irish assets is often within the charge.
- Missing the pay-and-file date: the CAT deadline runs from the valuation date, not from when the money arrives.
- Forgetting aggregation: earlier gifts or inheritances in the same group count towards the threshold and can push a later inheritance into tax.
- Being unprepared for UK checks: a large incoming transfer triggers source-of-funds questions — see proof of funds on large international transfers and the documents you may be asked for.
Why does a specialist broker matter for an Irish inheritance?
A specialist holds a tighter margin than a bank, offers forward contracts and market orders that banks rarely extend to private clients, and can time the conversion around the estate’s release of funds. On an inheritance running into six figures, a better rate and the ability to fix it in advance are where the money is genuinely saved.
Cambridge Currencies operates through FCA-authorised partners, including Currencycloud (an authorised electronic money institution, FCA reference 900199) and ScioPay, so funds are handled within a regulated framework. For the broader corridor, see our notes on UK–Ireland currency exchange and moving to Ireland from the UK, and for the wider picture, receiving an inheritance from abroad.
Frequently asked questions
Who pays inheritance tax on an Irish estate?
The beneficiary. Ireland charges Capital Acquisitions Tax at 33% on the value each person receives above their group threshold, unlike the UK, where the estate settles inheritance tax before distribution.
What are the current CAT thresholds?
Since 2 October 2024, the tax-free thresholds are €400,000 for a child (Group A), €40,000 for a sibling, niece, nephew or grandchild (Group B), and €20,000 for others (Group C). CAT above the threshold is 33%.
Do I pay Irish CAT if I live in the UK?
Usually, if the inherited asset is situated in Ireland. Irish CAT applies to all Irish property, and also where the disponer or beneficiary is resident or ordinarily resident in Ireland. A UK resident inheriting an Irish house or bank account is generally within the charge.
Could I be taxed in both Ireland and the UK?
Both Irish CAT and UK inheritance tax can be relevant, but a UK–Ireland double taxation convention provides relief so the same assets are not taxed twice. The detail is complex; take advice in both countries.
When is the CAT return due?
It depends on the valuation date. For valuation dates between 1 January and 31 August, the return and payment are due by 31 October that year; for dates between 1 September and 31 December, by 31 October the following year.
Can I fix the GBP/EUR rate before the Irish estate is settled?
Yes. A forward contract can fix a rate for a conversion up to around 12 months ahead, usually for a modest deposit. This suits Irish inheritances, where probate and the CAT calendar make the timing uncertain.
Speak to a specialist about your Irish inheritance
Bringing an inheritance home from Ireland? A Cambridge Currencies specialist can talk you through the current GBP/EUR rate, how to time the conversion around probate and the CAT return, and whether a forward contract fits your timeline — every transfer completed by phone with a dedicated broker. Get in touch for a quote to get started.
Related guides
- Receiving an EU inheritance as a UK resident
- Transferring an inheritance from abroad to the UK
- Inheritance from the USA to the UK
Cambridge Currencies provides currency guidance and execution, not tax, legal or financial advisory services. Irish and UK inheritance rules are complex and subject to change; confirm your position with a qualified adviser in both countries. Services are delivered through FCA-authorised partners, including Currencycloud and ScioPay. Any exchange rates shown are illustrative and used only to explain the mechanics.
