Inheritance Tax and the Channel Islands

fuzexi

Hi,
I'm hoping someone will be able to offer some advice:
My parents have several properties in the Channel Islands and will be leaving these to be divided between their 3 children. 
Two of these live in the Channel Islands, where there is no inheritance tax.
I live in the UK, (although would love to return to my island home), and have been here for about 20 years. 
In the UK I understand there is a 40% tax on inherited property once it's crossed the threshold of £325k.  
Most of the properties in question are above that threshold, but they are of course in the Channel Islands.
My question therefore is: what is taxed? Is it the person receiving it, or is it the property itself, which is in an area where it is not taxed.  
In other words, 'am I going to get a whopping tax bill in the future?'

Following that, would me returning to live in the Channel Islands, (which is something I would like to do)  bring me the benefit of not having to sell something that I would like to keep (the home I grew up in), and would like to pass onto my own children.

Thank you for any suggestions!

JGB1955

In the UK it's the estate that pays any inheritance tax - not the beneficiaries.  Not sure about the CIs.

Keep_pedalling

The important thing is where your parents live. If they live in the CIs them there will be no IHT, if they live in the UK then there whole estate will be subject to IHT including the CI properties. Married UK residents can leave up to £1M if they own they primary residence.

Jeremy535897

Inheritance tax cannot be charged on non-UK property owned by a non-UK domiciled transferor. Were your parents born in Jersey and have they always lived there? It does not matter that you are domiciled (or at least deemed domiciled) in the UK for tax purposes, except that if you are so domiciled when you die, all your worldwide estate is subject to UK inheritance tax. This can simply be avoided by your parents settling the property in a non-UK resident trust for you and your family under their wills, rather than leaving you the property personally. Firms abound in Jersey that can give the appropriate advice; I used to deal with them regularly.