Inherited shares in a foreign currency

Jamonit

Hi

I expect to receive a portfolio of shares as part of an inheritance. These shares are currently held in a German bank, where tax is due on dividends.

I'm a UK citizen, resident here. It presumably makes sense for the shares to be held in the UK where I benefit from my annual tax allowances.

However I can't find out what the shares are demoninated in. They're likely to be in euros and dollars. Am I able to simply transfer them to a UK share trading account whilst they remain in these denominations? Or must they somehow be converted to sterling, and if so, how?

Thanks for advice.

bigadaj

It may be possible but it's likely to be a little hassle and probably costly.

Also does the current investement portfolio match your needs, presumably not if they are inherited from someone who may be older, living in a different country etc

I'd sell the investments and bring them back into the uk and invest in a range if suitable investments, which may be a single multi asset fund. This gives you the opportunity to feed it into stocks and shares isas, protecting dividends from tax and also cgt from growth, or alternatively put into a pension depending on your situation and needs, with tax relief and untaxed growth.

Jamonit

Thanks. I didn't know there was such a thing. The only caveat is that I may move abroad, and may need to rely on income from this portfolio to supplement an income. Currently, I believe (I don't yet know for sure) that the portfolio comprises a range of blue chip shares invested much as one might within a SIPP, but not in a sipp. They belonged to my father, who lived in South Africa. He used dividends to live on, although he paid german taxes on these.

antrobus

Jamonit wrote: »

Hi

I expect to receive a portfolio of shares as part of an inheritance. These shares are currently held in a German bank, where tax is due on dividends.

I'm a UK citizen, resident here. It presumably makes sense for the shares to be held in the UK where I benefit from my annual tax allowances....

Makes no difference where the shares are held. You will get taxed the same.

Jamonit wrote: »

...However I can't find out what the shares are demoninated in. They're likely to be in euros and dollars. Am I able to simply transfer them to a UK share trading account whilst they remain in these denominations? Or must they somehow be converted to sterling, and if so, how?...

Again, it makes no difference what the shares are demoninated in. The City of London is pretty much used to all sorts of currencies, so it doesn't make much odds. After all British Petroleum shares are 'denominated' in USD and no one really cares.

It really depends on what shares you inherited. Are they quoted on the Deutsche Boerse? Are they traded on the LSE?

Jamonit

But I don't have an annual tax allowance in Germany. (no other income at present and may move abroad in the future)

I don't yet know where the shares are quoted. Only that they're held by a German bank. ( the legal proces has been tortuous over 18 months, but I reason to believe is about to be finalised)

So you're saying I could open a share trading account in the uk (for example with hargreaves lansdowne) and simply transfer the shares across, retaining whatever denomination they're in? If I sell them, do they then have to realised as sterling (in which case exchange rates would affect timing)?