Managing a foreign currency inheritance

Jamonit

Hi. I'm expecting to receive an inheritance shortly in the form of cash in three german Commerzbank bank accounts. Some of the cash however may be in the form of shares.
I'm a UK citizen and resident. But I'm considering moving overseas, perhaps to a EU country, but also possibly further afield. But I don't want to commit to this quite yet.
My problem(s):
A/ As a UK citizen, I benefit from the usual tax relief on the first 10k (ish) of income. I'm not working at the moment. So it makes sense for the cash and/or shares to be in the UK to benefit from this, otherwise I'm liable to german tax I believe. Is this true wherever I live?
B/ I'm reluctant to convert to sterling as it's declining against the euro and will do so more upon a Brexit, so want to wait before converting. How do I keep the cash in euros whilst benefitting from my UK tax allowance?
C/ Is there a share trading account in the UK that will allow me to demoninate my shares in euros or dollars (I don't know what the inherited shares are demoninated in yet) so I can simply transfer them over? (I currently have a SIPP with Hargreaves Lansdowne)
D/ It's possibly a sum which exceeds the governments savings protection scheme should a bank go under. How can I satisfy the above questions whilst protecting myself from crashing banks (I'm of the opinion that the risk of another 2008 being imminent is high)?

Many thanks for advice. I realise it's a complex situation, and I'm deeply confused about the best thing to do.

grumbler

Jamonit wrote: »

A/ As a UK citizen, I benefit from the usual tax relief on the first 10k (ish) of income.

Do you mean the interest? AFAIK, for inheritance the threshold is ~£300K.

B/ I'm reluctant to convert to sterling as it's declining against the euro and will do so more upon a Brexit, so want to wait before converting. How do I keep the cash in euros whilst benefitting from my UK tax allowance?

Keep it in your German account(s)? IIRC, in UK Barclays offer a free € account. In other UK banks such accounts are usually free for big balances, but don't expect to get any interest in UK.

D/ It's possibly a sum which exceeds the governments savings protection scheme should a bank go under. How can I satisfy the above questions whilst protecting myself from crashing banks

The only way is to spread the cash over several independent banks.

Jamonit

Thanks for the response.

I mean interest in cash in accounts, as well as dividends from shares, both of which would count towards income.

So your saying that a savings account in the UK that's denominated in euros won't receive interest?

grumbler

Even £ savings accounts in UK hardly pay any interest nowadays.

Jamonit

Yeah you're right of course. So I suppose it's the share dividends that I need to be more concerned with. And I can't find an answer to what to do with these anywhere. (am waiting for an answer from hargreaves lansdowne)

grumbler

Ask on Savings & Investments board.

agrinnall

grumbler wrote: »

The only way is to spread the cash over several independent banks.

Or put it in one of the NS&I accounts that offers full protection up to a much higher amount.

10pence

Jamonit wrote: »

Hi. I'm expecting to receive an inheritance shortly in the form of cash in three german Commerzbank bank accounts. Some of the cash however may be in the form of shares.
I'm a UK citizen and resident. But I'm considering moving overseas, perhaps to a EU country, but also possibly further afield. But I don't want to commit to this quite yet.
My problem(s):
A/ As a UK citizen, I benefit from the usual tax relief on the first 10k (ish) of income. I'm not working at the moment.
.

Are you in receipt of any state benefits? Income based benefits can be affected by capital above £6k and stopped above £16k.
You will have to report to the relevant benefit agency regardless of whether the monies are in the UK or not.

Jamonit

No, none. I refuse to claim them.