IHT if property inherited outside UK

anishh2003

Hi ,

Recently I inherited a property from my father outside UK , who was never in UK. 
Do I have to pay IHT ? 
If I sell the property , do I need to pay capital gains here as per my salary threshold ? 

Thanks 
An

Annisele

Technically inheritance tax is paid by the estate, not by the beneficiaries. So if your father lived outside the UK, and his property was outside the UK, then there will be no UK inheritance tax. There might well be taxes from a different country, but not the UK.

If you then sell the property when you live in the UK, then it probably will be chargeable to UK capital gains tax - and possibly also to taxes in the other country. More info at https://www.gov.uk/tax-sell-property/selling-overseas-property .

Keep_pedalling

If you sell the property then yes the CGT rules apply so if you sell for a higher price than it was valued for probate then the gain is taxable.