Inheritance on gift from abroad

I received a money gift from my parents, who are domiciled (and resident) abroad. It came from their non-UK assets. I transferred it to the UK and used it to buy a house here. Will the inheritance tax be due if my parents die within 7 years of giving me the gift?

Hi igys,

If an estate exceed the thresholds, UK Inheritance tax is paid by the estates of someone who is UK domiciled, even if they are not resident in the UK, when they die.  
Non Uk residents would only be subject to inheritance tax in the UK, if they had  UK assets at their time of death.  
There is more information at When someone living outside the UK dies.

Thank you.

Thank you for the message, but unfortunately it doesn't answer the question asked. My question related to the situation where there is a gift between a person that's not UK-domiciled and not UK-resident to a person who is a UK-resident, and the gifter dies afterwards. Thank you.

Hi,

Please contact the Inheritance Tax team for advice.

Inheritance Tax: general enquiries

Thank you.

IHTM27212 from Inheritance Tax Manual (https://www.gov.uk/hmrc-internal-manuals/inheritance-tax-manual/ihtm27212) says: > Unsettled property that is situated (IHTM27071) abroad at the time it is transferred is excluded property if the beneficial owner (IHTM04031) is also domiciled (IHTM13000) outside the UK at that time. I suppose this should also be relevant for a money gift from parents, if both the money and the parents are domiciled abroad at the time of the transfer?

Hi,
If the gift came from UK assets, there may be inheritance tax payable by the deceased estate.  
If the deceased has no UK assets, when the gift was made, there is no inheritance tax.
Thank you.

Hi,
That is correct.
Thank you.

My parents who were Pakistani national and residents, have both passed away. They have left myself and my siblings inheritance. What's the best way to bring cash to the UK? Is there a limit on how much I can bring in one trip or can I transfer it all through my bank in Pakistan to my bank in UK? Am I liable to pay any tax on it in uk? What proof of any do I need to provide in the UK? Thanks

Hi Saima Irfan,
The guidance below explains the rules on bringing cash to the UK.
Take cash in and out of the UK                                     
From a tax perspective, there are no Income Tax implications when you transfer funds from an overseas country to the UK.
However, any interest or dividends generated may be taxable.  
Tax on savings and investments: detailed information
Thank you. 
 

Dear Madam/Sir, I am a UK resident since birth. A long time family friend, being Swiss citizen and residing in Malta, is considering gifting me a substantial sum of money (approximately £200,000) by bank transfer to the UK, to assist me and my husband with our house purchase in the UK. I understand that gifts are generally not subject to income tax or capital gains tax for the recipient in the UK.  However, I would like clarification on any potential tax implications, particularly regarding inheritance tax, given that the gift is coming from a third country. Your guidance on this matter would be greatly appreciated. Yours sincerely

Hi Zbls,
There are no Income Tax implications on the receipt of a cash gift unless the cash gift generates interest or dividends.
These would then potentially be subject to tax.
Further guidance can be found here:
Tax on savings interest
Inheritance tax is payable on the UK estate of the deceased, if they are not resident in the UK and their world-wide estate if they are UK resident.
The cash gift will not have UK Inheritance Tax implications, but there could be something of this nature in Malta for your friend.
Thank you. 


 

Dear Madam/Sir I have a land which I would like to sell in Pakistan, which was gifted to me by my parents a few years ago. I wanted to know if I sell the land: How can I bring all the money back ? Can I transfer the money from my Pakistani account to my UK bank account And will I be charged for doing this. Would I have to pay any tax on the money bought back from Pakistan. I am a UK citizen and resident. I do not work but I am married with four children and I am a home maker. My husband is self employed. Do we require any documents for this whole process. And will I have to inform HMRC about this land which I will be selling in Pakistan. My mother a UK resident has currently passed away but my father is still alive and lives in the UK. Thank you.

Hi, I'm a Singapore citizen and tax resident and live in Singapore. I used to work in the UK and have a work pension. I read that work pensions will be subject to UK inheritance tax in 2027. I also bought some shares listed on the London Stock Exchange via a Singapore broker. Am I right in understanding that the shares under my work pension will be subject to inheritance tax but not those shares bought via a Singapore broker? Thank you

Hi,
Please contact the Inheritance Tax team for advice.
Inheritance Tax: general enquiries
Thank you.

Hi
How you transfer the funds is a personal choice. You may be liable to capital gains on the sale of the land if there has been an increase in value - Capital Gains Tax: what you pay it on, rates and allowances

My friend is a beneficiary from a bare trust set up by her deceased father in Canada but will not receive this until the 2nd wife of the father also dies. She is 98 , so when this considerable amount of cash arrives in the UK will my friend have any tax to pay on the cash legacy ?

Hi,
Inheritance tax is only due on UK assets. Therefore inheritance that you receive from anywhere that is not the UK is not taxable and does not need to be declared. However, you will need to declare any income that is then generated from these assets.
Thank you