Tax on an Inheritance from Canada

BusPass_2

A friend has recently been notified that she is a beneficiary under a will made by her aunt in Canada. Her aunt is Canadian.

Will my friend have to pay any UK tax on her inheritance?

Unfortunately she has absolutely no idea of how much her inheritance is worth.

any information will be very gratefully received.

RayWolfe

No..........

Cook_County

There may be a taxable foreign curency gain from date of death to the date the Canadian $ are turned into £.

egrid1

Your friend will not have any UK inheritance tax to pay on the inheritance, whether inheritance tax is due in Canada will be subject to their taxation laws.
If she accrues interest on her inheritance before the money is transferred to her in the UK, then she will need to declare the interest and will be liable to tax on the interest.

Cook_County

egrid1 wrote: »

Your friend will not have any UK inheritance tax to pay on the inheritance, whether inheritance tax is due in Canada will be subject to their taxation laws.
If she accrues interest on her inheritance before the money is transferred to her in the UK, then she will need to declare the interest and will be liable to tax on the interest.

Plus Canadian dollars are a chargeable asset for UK CGT purposes so there may be UK CGT in any case.