United Kingdom & New Zealand Inheritance Tax Responsibilities.

My father is a New Zealand citizen living in NZ and has been for many years. I'm his son a UK citizen, living in the UK. Could I ask two questions please? As a nominated beneficiary in his will am I required to pay UK inheritance tax on any money coming from NZ received by myself? I understand that current UK inheritance tax for people bequeathing in the UK is £325,000. Secondly, I am named Power of Attorney and Executor / trustee to the will. Is the estate left to me by my father in NZ considered a UK trust for tax purposes? and accordingly would I have to lodge tax returns? Thank you.

Hi,

No, Inheritance Tax in the UK, is paid on the UK estate of non resident individuals, by their estate. If your father's has no UK assets, then his estate has no UK tax to pay.

Any monies you inherit are not taxable.  

If you inherited assets that you then dispose of, you may be subject to Capital Gains Tax in the UK. Any overseas income or capital gains should be declared in a Self Assessment tax return.

Thank you.

I need to know about the opposite senario. If a single parent dies who was UK citizen and resident, does UK IHT apply to the portion of assets left to a non UK resident who lives and is resident in NZ? Assets would include property and shares. Thank you

Hi,

Please contact the Inheritance Tax team for advice.

Inheritance Tax: general enquiries

Thank you.

My husband UK resident has died leaving me everything in his will. The UK assets don't come to IHT threshold so no probate is needed here but he has savings in NZ from sale of a house 1month prior to death. Will I need a grant of probate for that?

Hi Jools Jools,
The income would still form part of his estate so you would need to check with a solicitor.
Thank you.