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Posted Thu, 05 May 2022 04:36:20 GMT by IvyCat
My father died recently and I am helping Mum to decide whether to wind up the family Trust. I am a beneficiary of the Trust and per her will would receive one-third of its assets when she dies. For simplicity, let's assume I inherit it all. The Trust and its assets are in New Zealand (no UK assets; she has not lived in the UK). I am a UK tax resident. One consideration is whether I would need to pay UK tax if a receive a distribution from the Trust when Mum passes, as part of my share of her estate. The family home is in the Trust with a book value of c. NZ$200k vs its market value of c. NZ$1.5m - i.e. there is a large capital gain looming. This is tax free in NZ (no CGT) but what happens at the UK end? Would I pay CGT or income tax? Presumably, if Mum collapses the Trust and the assets are held in her name, I would pay no tax when I on my inheritance?
Posted Thu, 05 May 2022 11:10:59 GMT by HMRC Admin 19

Please contact the Inheritance Tax team for advice:

Inheritance Tax: general enquiries

Thank you.

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