Receiving inheritance money from abroad

edited 30 November -1 at 1:00AM in Cutting Tax
5 replies 39.9K views
shiningheroshininghero Forumite
78 Posts
edited 30 November -1 at 1:00AM in Cutting Tax
My nan passed away and she left me £90k but the money is in Japan. My mom said she'll just 'send it' to my normal account here in the UK.

- Is this such a simple process?
- Would HMRC stop the transfer assuming 'abnormal' movement?
- Would I have to pay income tax on £90k?

If I am going to get taxed, I'd rather fly out there and bring back the cash myself and change the money slowly at the bureau de change. Does anyone know how money transfer from abraod works?

Any help will be much appreciated

Replies

  • Cook_CountyCook_County Forumite
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    There is no UK tax on an inheritance unless you are also receiving income or gains during the period of administration - which may also already be taxed.
  • There is no UK tax on an inheritance unless you are also receiving income or gains during the period of administration - which may also already be taxed.

    Thanks - What does the period of administration mean? Would HMRC ask me to prove that they money was genuinely from my nan's death (death certificate etc.)?
  • fengirl_2fengirl_2 Forumite
    4.5K Posts
    HMRC do not have access to bank accounts unles you are under investigation and you give permission.
    The period of administration is the time between death and when the assets are distributed. If you ever were investigated presumably you could produce a letter from the solicitor concerning the legacy,. A death cerificate wont prove anything.
    I think you are worrying unnecessarily.
    £705,000 raised by client groups in the past 18 mths :beer:
  • dzug1dzug1 Forumite
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    If you bring back the cash yourself you will have to declare it at customs who will ask you how you came by it. They might well assume it was drugs money until you could prove otherwise which could well entail more than just producing a death certificate. It will also cost you loads more in charges.

    The original proposal - direct to your bank account - is quick and simple. The only tax you will pay is income tax on the interest once it starts earning. The capital is not income and is not taxable
  • You need to know whether there is any UK IHT due on the £90k.

    Some legacies are 'tax-free' in the sense that the recipient does not bear any inheritance tax (the tax is usually paid out of the residue of the estate). Some legacies are 'tax-bearing', which means the recipient bears the inheritance tax.

    Under general law gifts of non-UK assets are 'tax-free' unless the will provides otherwise. It may be possible that foreign currency is regarded as a non-UK asset, but this should be checked as should the terms of the will.

    The starting point though is to check that your nan is domiciled in the UK. If not then any assets outside the UK will not normally be subject to IHT.
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