🗳️ ELECTION 2024: THE MSE LEADERS' DEBATE Got a burning question you want us to ask the party leaders ahead of the general election? Submit your suggestions via this form or post them on our dedicated Forum board where you can see and upvote other users' questions. Please note that the Forum's rules on avoiding general political discussion still apply across all boards.

Using inheritance from foreign relative to pay mortgage deposit

Options
I am a UK resident, born and currently domiciled in the UK. My family, on my mother's side, are from Turkey. I am looking to buy a house via a mortgage as a first time buyer and plan to use £10,000 from Turkey that was a part of my inheritance (Turkish grandfather) for the deposit (plus £20,000 of my own savings).

As far as I am aware, the UK does not impose an inheritance tax on the receipt of a legacy abroad as it assumes tax has already been paid by the estate of the deceased (Financial Times, 2015: 'Can I transfer overseas wealth to the UK without incurring tax?')

a) Is this (above) correct as of 2021?

A few further questions:
b) Am I liable to pay any other tax or charge in the UK for this sum?
c) What kind of proof, if any, do I need to provide to mortgage brokers about the receipt of the funds (with regard to the inherited portion)?
d) Does it make a difference if I convert the money to GBP in Turkey and bring it on my person or via a bank transfer (relates to point 'c' as it might to harder to prove to lenders, unless it is not a reason for rejecting a mortgage application)?

Thanks in advance, appreciate any help with any of my questions :)


Comments

Meet your Ambassadors

Categories

  • All Categories
  • 8 Election 2024: The MSE Leaders' Debate
  • 343.9K Banking & Borrowing
  • 250.3K Reduce Debt & Boost Income
  • 450K Spending & Discounts
  • 236K Work, Benefits & Business
  • 609.2K Mortgages, Homes & Bills
  • 173.4K Life & Family
  • 248.6K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards