Inheritance tax query!

cb94uk

Hi

I'd appreciate any help. My partner has inherited 1/6th of a house abroad and we've decided to purchase the other 5/6ths of the house ourselves. The mortgage has been approved and our inheritance amount is £60,000 - we are just doing a straight purchase of the other 5 inheritors.

My question is are there any UK inheritance tax issues here? No inheritance tax is payable on the property in its current location and we are UK domiciled however the relative that died was not UK domiciled.

Also do we need to inform UK tax about the house purchase? We intend to move and live in it in a few years and don't intend to rent it out in the meantime.

Thanks in advance!

SeniorSam

As the relative was not UK domiciled or resident here, no UK IHT is payable. The purchase of the other parts of the property abroad are of no concern to the tax man and as you will not be renting the property out, no income tax is applicable.

I presume that your lawyers have made all the appropriate searches on the property you are buying, as some areas abroad are rife with property that has had no planning permission and may be reclaimed by the local authority there.

Sam

cb94uk

Thanks for your advice, very helpful! Yes we have a good lawyer and everything is in the process of being fully checked but I appreciate your advice.