Using inheritance from foreign relative to pay mortgage deposit

Chichaldo · 16 March 2021 at 4:13PM

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