Credits you can claim against Capital Acquisitions Tax (CAT)

Double Taxation Relief (USA)

The agreement between Ireland and the USA covers Inheritance Tax only. Ireland can only tax property that is located abroad if the person giving the inheritance is either:

  • domiciled in Ireland
  • not resident in the USA.

Within these rules, beneficiaries resident in Ireland do not have to pay tax on foreign property.

The procedure for claiming tax relief in the USA is identical to the procedure for applying in the UK. The USA agreement contains a set of rules, called the ‘Situs Code’. The code sets out how the situs (location) of different classes of property are to be determined. This code applies if the deceased person dies while resident in either Ireland or the USA, or both.

The code sets out the situs of the property as follows:

Ireland - U.S. Convention: Situs Code
Class of PropertySitus of Property for Taxation

Immovable property

(such as land and houses)

Place it is located

Tangible moveable property

(such as currency, negotiable bill of exchange, promissory notes)

Place where it is located at the time of death or, if in transit, at the place of destination

Debts due to the deceased, secured or unsecured

(for example, bank accounts, mortgages, dividends, shares in Government or municipal corporations)

Place of domicile of the deceased at the time of death

Shares or stock in a corporation (except Governmental or municipal corporation)

Place where or under the law of which the corporation was created

Policies of insurance and assurance

Place of domicile of the deceased at the time of death

Ships and aircraft (includes shares of these)

Place of registration

Goodwill of business

Place where business carried on

Patents, trademarks and designs

Place of registration

Copyright, franchises and rights of licences to use any copyrighted material, patent, trademark or design

Place where the rights are exercisable

Rights or causes of action ex delicto surviving for the  benefit of an estate of a decedent

Place where such rights or causes of action arose

Judgment debt

Place where judgment is recorded

Next: Unilateral relief