Tax position on inheritance from abroad.

Hoof_Hearted

I will need to take proper advice on this, but always worth picking MSE brains.

If somebody inherits say £100,000 from a relative not domiciled in the UK and there is no IHT in that country, is there any tax liability when transferring the money to this country?

pjclar02

Nope. No tax issues for the UK recipient.

Cook_County

Possibly CGT on foreign currency gains until 5 April 2012.

UK IHT on the monies once inherited.

Hoof_Hearted

Cook_County wrote: »

Possibly CGT on foreign currency gains until 5 April 2012.

UK IHT on the monies once inherited.

A bit of a conflict there. Why would IHT be liable? Surely, this only applies in the country of domicile (if they have any).

Cook_County

No-one is not domiciled. This is impossible.

Once inherited by a UK domiciliary the asset falls within the charge to UK IHT.

dzug1

Cook_County wrote: »

No-one is not domiciled. This is impossible.

Once inherited by a UK domiciliary the asset falls within the charge to UK IHT.

It's not 'not domiciled' - it's no IHT in the country where the deceased was domiciled.

And I'm not sure how the UK comes to assess assets that were never in the UK to IHT

jennifernil

CC means it could be liable to UK IHT when the UK domiciled recipient dies I reckon. Looking ahead a bit, presumably, but correct.

kidmugsy

Not much point being correct if all you do is confuse the OP.

John_Pierpoint

Perhaps HH is in his /her dotage ?:D

Probably not possible to do an instrument of variation in the foreign jurisdiction?

Hoof_Hearted

John_Pierpoint wrote: »

Perhaps HH is in his /her dotage ?:D

Excuse me! At least I know what I mean!

Hoof_Hearted

dzug1 wrote: »

It's not 'not domiciled' - it's no IHT in the country where the deceased was domiciled.

And I'm not sure how the UK comes to assess assets that were never in the UK to IHT

Thank you. Exactly what I mean.