Inheritance from abroad - what to do?

Lux_K

Hi Everyone,

I’m about to receive an inheritance (over 7 figures) in Euros. I’m resident in the UK for tax purposes but I’m not a British national. I’m wondering if it makes sense to park this money in Europe rather than exchange it all at once? Do you think it’s worth looking for a wealth manger to help? I’m ok with simple investments and have some financial knowledge but feel a bit out of my depth! Has anyone been in a similar situation with money coming from abroad and what did you find the best course of action?

TIA

Keep_pedalling

Unless you are planning on leaving the UK in the near future I can’t see any point in parking any of it in Europe. There is no UK tax to pay on the capital.

With such a large windfall consulting an Independent Financial Advisor rather that a wealth manager.

DRS1

There used to be something called the remittance basis which applied to non UK domiciled but UK resident people. That could have given you a reason to keep the money and any gains or income from the money outside the UK. But that was abolished recently and there is now something called FIG but that may not apply to you (depending on how long you have been UK resident). If it doesn't then you are taxed on your worldwide income and gains so no point keeping the money abroad. But you may want to consult a specialist personal tax lawyer or accountant - one who specialises in non doms. Unfortunately they are the sort of people you find at expensive firms in London or Edinburgh.

poseidon1

I concur with @DRS1.

As a non dom living in the UK you used to have access to the remittance basis of tax ( ie you were not taxed on overseas gains and income if left to accumulate offshore and not remitted).

That whole regime was swept away by Labour government with effect from 5 April 2025 and if you have been UK tax resident for more than 10 years you are taxable on a world wide basis subject to certain beneficial transitional provisions for non doms who had been accessing the remittance basis.

If you are committed to remaining in the UK for the foreeable future then certainly no point leaving the funds offshore given you are liable to UK tax thereon, and of course Euro rates of savings interest are poorer than the UK, whilst the UK also has more attractive equity investment vehicles , competitive platforms and tax shelters than most parts of Europe.

A top flight independent financial adviser could certainly make sense here, but given the quantum of your inheritance you are also a candidate for traditional private bank services who also provide investment management as well as traditional stockbrokers, so a broad range of options to consider, all of whom will wish to compete for your custom.

However, if there is a possibility of returning to your country of origin in the future, having a session with a non dom tax specialist to discuss your medium to long term intentions, would certainly be sensible prior to any meeting with an investment adviser, to ensure structuring of whatever you do in the UK can be tax efficiently exited as advantageously as possible when the time comes.