IHT - Foreign Assets

[tg]

I am a UK resident and taxpayer. My parents are not UK citizens, do not
live in UK, and do not own any assets in UK.

My question is, if I inherit their assets (all outside UK) in future, am I
liable for any UK inheritance tax?

Thanks in advance.


Cheers,

TG

[David Woolley]

Post by tg
I am a UK resident and taxpayer. My parents are not UK citizens, do not
live in UK, and do not own any assets in UK.
My question is, if I inherit their assets (all outside UK) in future, am I
liable for any UK inheritance tax?

Whilst I personally think the answer to the implied question is obvious,
I don't have enough certainty to give a definitive answer, so I would
suggest asking HMRC.

However, I would point out that inheritance tax is a tax on the
deceased, not the beneficiaries. The only time that money is extracted
from people other than the deceased is when lifetime gifts that are
still taxable cause the tax liability to exceed the value of the estate.

If UK inheritance tax were payable, the identity of the other country
could be important, because there may be anti-double taxation provisions.

[Michael]

On Mon, 6 Mar 2017 10:17:04 +0000, David Woolley

Post by David Woolley

Post by tg
I am a UK resident and taxpayer. My parents are not UK citizens, do not
live in UK, and do not own any assets in UK.
My question is, if I inherit their assets (all outside UK) in future, am I
liable for any UK inheritance tax?

Whilst I personally think the answer to the implied question is obvious,
I don't have enough certainty to give a definitive answer, so I would
suggest asking HMRC.
However, I would point out that inheritance tax is a tax on the
deceased, not the beneficiaries. The only time that money is extracted
from people other than the deceased is when lifetime gifts that are
still taxable cause the tax liability to exceed the value of the estate.
If UK inheritance tax were payable, the identity of the other country
could be important, because there may be anti-double taxation provisions.

Could repatriating those foreign assets back to the UK incur any kind
of tax liability?

[tim...]

Post by Michael
On Mon, 6 Mar 2017 10:17:04 +0000, David Woolley

Post by David Woolley

Post by tg
I am a UK resident and taxpayer. My parents are not UK citizens, do not
live in UK, and do not own any assets in UK.
My question is, if I inherit their assets (all outside UK) in future, am I
liable for any UK inheritance tax?

Whilst I personally think the answer to the implied question is obvious,
I don't have enough certainty to give a definitive answer, so I would
suggest asking HMRC.
However, I would point out that inheritance tax is a tax on the
deceased, not the beneficiaries. The only time that money is extracted
from people other than the deceased is when lifetime gifts that are
still taxable cause the tax liability to exceed the value of the estate.
If UK inheritance tax were payable, the identity of the other country
could be important, because there may be anti-double taxation provisions.

Could repatriating those foreign assets back to the UK incur any kind
of tax liability?

after they have been inherited?

no

be prepared for the third degree over money laundering regs - make sure to
keep all the relevant paperwork

tim

[Robin]

Post by tg
I am a UK resident and taxpayer. My parents are not UK citizens, do not
live in UK, and do not own any assets in UK.
My question is, if I inherit their assets (all outside UK) in future, am I
liable for any UK inheritance tax?

No - if they have not lived in the UK in the past.

But you shouldn't trust me - or any other stranger - on the internet on
such an important matter. So have a look at:

https://www.gov.uk/inheritance-tax/when-someone-living-outside-the-uk-dies

which includes:

"If your permanent home (‘domicile’) is abroad, Inheritance Tax is only
paid on your UK assets, for example property or bank accounts you have
in the UK."

[tg]

Thanks very much guys. You've been most helpful!

Cheers,
TG