Clarification on rules when receiving inheritance from abroad

Hi cesarhernandez1967,
You can see guidance here:
How Inheritance Tax works: thresholds, rules and allowances
Or you can contact our Inheritance Tax team for advice.
Inheritance Tax: general enquiries
Thank you.

Hi David,
No.  
Your late parents estate would be taxable under Maltese law, with any tax payable by the estate in Malta, as that is where they were resident.
Once the estate is finalised, any distributions from the estate to UK beneficiaries would not not taxable in the UK.  
Any interest / dividends that arises from the UK beneficiaries share of the estate would be taxable and would need to be declared by the UK beneficiary.
Thank you.

Hi, I’m a tax resident in the UK and my father is a tax resident in Bulgaria (he has never lived in the UK). My father wants to leave me the following as inheritance: a house in Bulgaria, money held in two banks in Bulgaria and Israel, and stocks held in UAE. Would I need to pay tax on this inheritance, and how much?

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.
Additionally, Capital Gains Tax maybe due on any property sales.
Thank you

Hello, regulations regarding inheritance rules are set to change in April 2025. I am domiciled in the UK and have been living and working here for the past 15 years. If I were to inherit my relatives who have never been UK residents and do not have assets in the UK, will I need to pay tax as a beneficiary residing in the UK?

Hi ,
 

No.  The beneficiaries of estates do not pay inheritance tax.   It is the estate of the deceased that pays inheritance tax, before distributing the estate to the beneficiaries.  If a beneficiary disposes of an asset they inherited, then they may have capital gains tax to pay on gains arising from the disposal. Thank you .

Hello, my wife and I are UK tax residents, domiciled here. We have dual Croatian and UK citizenship, as does our daughter, who is also a UK tax resident. My wife and I have a property in Croatia we own which we wish to pass to our daughter. Based on the message thread above, I assume my daughter will NOT be liable for IHT in the UK, as the property is not a UK asset, correct? (I appreciate my daughter would liable for CGT and tax on the Croatian property income in the UK, however)

Hi Oakleyad,
Inheritance tax is only due on UK assets. 
Therefore inheritance 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 the asset.  
Also if you sell the property, Capital Gains Tax may be due. 
Thank you.