IHTM27171 - Foreign property: Double Taxation Conventions: Netherlands
From 6 April 2025, for inheritance tax purposes,听domicile is replaced by long-term UK residence听and you can find details of these rules at IHTM47000.听
Where the transferor was, according to the Double Taxation Convention:听
Domiciled or resident in the Netherlands, and听
had not been domiciled in the UK or was not a long-term UK resident within the 10 years of the transfer.听
the UK must waive its taxing rights on any asset the transferor held that was within Article 8, even if it was situated in the UK. You should consult Technical about any proof of taxation in the Netherlands.听
When a double taxation credit is due under Article 13, you may allow the amount claimed in IHT400 provisionally. But the case should not be closed until the payment of Dutch succession duty has been certified by the Dutch authorities. There is no special form for a certificate. You should tell the taxpayer or agent to obtain a statement from the Dutch authorities showing:听
(a) the total tax attributable to the property in question (excluding any interest and penalties)听
(b) the property and its value on which that tax was charged听
(c) the date of payment of that tax听
(d) that the tax was computed in accordance with听the Convention听
(e) that the tax is final听
(f) that no application for a refund of tax is now pending or authorised and that, if a refund is made, due notice will be given to this office.听
The Dutch authorities will send the certificate in the form of a letter direct to us.
The credit given cannot be more than the amount of UK Inheritance tax payable on the property concerned.
Certificate of IHT Paid
A certificate of IHT paid will also be a letter that we will issue if the taxpayer or agent requests one. It is prepared by Technical and sent to the Dutch authorities, with a copy to the applicant. If there is any adjustment of tax after a certificate has been issued, refer the case back to Technical to issue an amending certificate.