Which Tax ?

STAVROS

The father of my relative died 9 years ago leaving a small estate under the IHT threshold. This year a court in an Asian country ruled that the father was entitled to a share in land from a grandfather who died intestate 50 years previously. It is a country that has religious rules on succession and inheritance which overrule a will in any case. It appears that the land abroad had been commandeered for 50 years by an uncle who has also just died. Since the value of the land is above the IHT threshold we phoned the HMRC IHT advice line and the adviser didn't think IHT payable as the asset wasn't owned at the time of death. So is any UK tax payable or do we just pay the foreign tax demand ?

Keep_pedalling

How much is the share now worth? 

STAVROS

The IHT Act 1984 seems to confirm that it is ownership of asset at time of death that applies.

2)A person who has a general power which enables him, or would if he were sui juris enable him, to dispose of any property other than settled property, or to charge money on any property other than settled property, shall be treated as beneficially entitled to the property or money; and for this purpose “general power” means a power or authority enabling the person by whom it is exercisable to appoint or dispose of property as he thinks fit.

https://www.legislation.gov.uk/ukpga/1984/51/section/5