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Posted Mon, 01 Apr 2024 06:38:18 GMT by uk_resident
As a UK resident I am due at some point to have an inheritence in Germany from my germany resident father. This involves property to my UK resident adult children and ongoing income to me. I believe we will be liable to German inheritence tax, but need to clarify our UK tax obligation. Any advice and recommendation for next step to get a confirmed picture ?
Posted Thu, 04 Apr 2024 18:26:42 GMT by HMRC Admin 25 Response
Hi uk_resident,
UK Inheritiance Tax is only paid on UK tax
How Inheritance Tax works: thresholds, rules and allowances
Thank you. 
Posted Sat, 06 Apr 2024 17:24:08 GMT by uk_resident
Hi, could you please review and correct your reply, as I think you wanted to say that UK Inheritance is only paid on UK assets, rather than UK tax. If this is correct, could you please confirm that after paying inheritance tax in Germany there is no UK tax payable on the property, as it cannot become a based UK asset. I believe your linked information doesn't makes it clear with a simple statement. How would rental income from the German property have to be declared in the UK and is there a choice as to where it is taxed ?
Posted Wed, 17 Apr 2024 07:55:54 GMT by HMRC Admin 25 Response
Hi uk_resident,
As this is a German estate, inheritance tax would only be payable by the German estate in the UK If the deceased had UK based assets that exceeded the UK inheritance tax thresholds.
If you now receive an income from overseas property, then as a UK resident, it is taxable in the UK.
You would be required to complete a Self Assessment tax return, to report any foreign income you receive and claim tax relief of up to 100% of any foreign tax you have to pay on that income.
Thank you. 
Posted Tue, 06 Aug 2024 16:55:51 GMT by Flipflop78 Helga
I'm a dual national (British and German citizenship), born in Germany, but lived in UK (also UK tax resident) for over 30 yrs. After my mother's death in Germany (German national and resident) I will inherit 50% of her estate, with the other half going to my brother (German national and resident). How/where will this estate be taxed and what do I have to tax here in the UK?
Posted Mon, 12 Aug 2024 10:11:03 GMT by HMRC Admin 5 Response
Hi Flipflop78 Helga

Your late mother's estate will be taxed in Germany.  Once all German taxes are paid, you will inherit your 50% of the estate.  
If you inherit a property or a shre of it and dispose of this property for more than the estates value, then you may have capital gains tax to pay on this.  
Capital gains tax arising from foreign property, should be declared in a self assessment tax return.

Thank you

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