UK resident inheriting foreign asset

Troughton

Hello,

If I (UK citizen and resident who has never lived elsewhere) inherit a property in Portugal from my father who was a Portuguese citizen and resident and never lived in the UK, does it result in me having to pay inheritance tax?

TadleyBaggie

Individuals never pay IHT, estates do.

Marcon

OP - have a look at https://www.lumonpay.com/articles/inheritance-tax-in-portugal-for-non-residents-your-guide/#:~:text=Inheritance%20tax%20was%20abolished%20in,assets%20located%20within%20the%20country. which should be helpful.

Keep_pedalling

TadleyBaggie said:

Individuals never pay IHT, estates do.

This is not always the case with estates in other countries. The Republic of Ireland for instance has a Capital Acquisitions Tax which taxes the recipient of gifts and inheritances. 

poseidon1

Troughton said:

Hello,

If I (UK citizen and resident who has never lived elsewhere) inherit a property in Portugal from my father who was a Portuguese citizen and resident and never lived in the UK, does it result in me having to pay inheritance tax?

Your father appears to be a foreign born non dom and therefore not liable to UK inheritance tax on his foreign possessions. Unless he had any UK situs assets of substance ( such as a property owned in the UK), he has no UK IHT exposure at all. 

As advised by others you have no personal exposure to UK IHT in this circumstance.

 However there are limited circumstances where someone in receipt of a pre death gift can face a personal IHT liabilty. That is not a situation you are faced with.