International Inheritance

Gottaplan

My dad just inherited and he wants to give me some money. He's based in Canada. Should fall well below the inheritance tax threashold but is it something that I should declare and is taxable here?

My mum, also based in Canada is starting to plan for us and in this case it would be over the inheritance tax threshold. Again, would it be subject to UK inheritance tax laws?

Thanks!

Keep_pedalling

There is no taxation on gifts, and UK IHT rules don't apply to people living in other countries. Your mum and dad's estates would be subject to Canadian tax rules.

agrinnall

It's a gift to you so generally no tax is payable in the UK. I would doubt if HMRC have any interest in inheritance from Canada but without knowing the full status of your parents it's impossible to be certain.

Annisele

If this was in England, I'd be suggesting your dad looked at a "deed of variation". In effect, it's possible (in England) to make it so that you inherited the money, and it didn't go through your dad's hands at all. That can be beneficial for tax purposes here.

You might be better asking this question on a Canadian forum.

Edit: I'd assumed the person who died was domiciled in Canada - but if that's not the case, you might also want to ask this question on a forum belonging to any countries the deceased was domiciled in and/or lived in. And if it's a large amount of money, take some paid for advice - the more countries that are involved, the messier this sort of thing can be.

antrobus

Keep_pedalling wrote: »

There is no taxation on gifts, and UK IHT rules don't apply to people living in other countries. Your mum and dad's estates would be subject to Canadian tax rules.

Actually, they do. It depends, would be a more accurate answer. IHT is based on domicile not residence.

https://www.gov.uk/inheritance-tax/when-someone-living-outside-the-uk-dies

Gottaplan

Actually, my Grand-mother lived and died in France!
BUT, looking at Antrobus' link, seems we'll be OK!

Thank you!