Overseas land CGT question

MIZZ12

Hi, I am a UK resident and have inherited some land overseas and the inheritance tax has all been paid overseas.  I am looking to sell the land and wanted to know whether once the proceeds come into my UK bank account, whether I would be subject to further tax in the UK?  In these cases, is it best to seek professional advice and what sort of professional would it be best to approach?  Just want to make sure everything is done correctly.  But if its straightforward, I don't want to engage a professional if it's not necessary.  Thankyou!

eskbanker

Capital gains tax may be applicable if the price you get is higher than its value at the time of death/inheritance.

[Deleted User]

MIZZ12 said:

Hi, I am a UK resident and have inherited some land overseas and the inheritance tax has all been paid overseas.  I am looking to sell the land and wanted to know whether once the proceeds come into my UK bank account, whether I would be subject to further tax in the UK?  In these cases, is it best to seek professional advice and what sort of professional would it be best to approach?  Just want to make sure everything is done correctly.  But if it’s straightforward, I don't want to engage a professional if it's not necessary.  Thankyou!

No tax on the transfer of the money but eskbanker comments pertinent.

MIZZ12

eskbanker said:

Capital gains tax may be applicable if the price you get is higher than its value at the time of death/inheritance.

Thanks, yes the sale proceeds will be much higher than the valuation of the land which was applied for the inheritance and the resultant IHT.  Would it be best to consult a tax professional?  Thanks

[Deleted User]

MIZZ12 said:

eskbanker said:

Capital gains tax may be applicable if the price you get is higher than its value at the time of death/inheritance.

Thanks, yes the sale proceeds will be much higher than the valuation of the land which was applied for the inheritance and the resultant IHT.  Would it be best to consult a tax professional?  Thanks

Most definitely - could be CGT in two countries with reliefs available.

Jeremy535897

You will also need to calculate the gain on sale in sterling by converting the inheritance value to sterling when you inherited it, and converting the sale proceeds into sterling on the date of sale.

Keep_pedalling

Is the gain in value because of the death happened a considerable time ago or because it was under valued? If it was the latter it might be additional inheritance tax that might be due rather than CGT.

MIZZ12

Keep_pedalling said:

Is the gain in value because of the death happened a considerable time ago or because it was under valued? If it was the latter it might be additional inheritance tax that might be due rather than CGT.

Thanks, probably a mix of undervalued possibly plus land is at a premium with prices going up significantly.