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Posted Thu, 15 Apr 2021 19:52:11 GMT by Ari
Hello, I have double citizenship: Polish and British. I live and work in Great Britain and pay here my taxes. This year I have received a money gift from my mother who unfortunatelly died recently. Due to her death I have inherited additionally a house in Poland. My mother was Polish citizenship and lived in Poland. All assets (cash and house) are in Poland. Do I have to pay the gift and the inheritnace tax in Great Britain? Do I have to pay income tax on this money/assets? Do I have to pay income tax or other type of tax if I decide to transfer the money from Poland to Great Britain? If I decide to sell the house in Poland and transfer the money to my British bank account or invest the money in a flat in Great Britain or any cash investment do I have to pay income tax for the transfered money or do I pay taxes only for the house bought or the pure investment gains? Thank you very much in advance! Stay healthy! Best regards Ari
Posted Mon, 19 Apr 2021 13:36:57 GMT by HMRC Admin 17

Hi,
 
You do not need to pay any income tax on the house or cash unless rental income is received from the house or interest is generated from the cash.

You would need to speak to Inheritance tax regarding Inheritance rules.

If you sell the house in Poland then you may also be subject to Capital Gains tax on any profit made.

Likewise there is no income tax liability on the transfer or money betwwen accounts, only interest or dividends generated are taxable.

Further guidance on these can be found here :

Inheritance Tax: general enquiries

Capital Gains Tax   and

Tax on foreign income .

Thank you.
Posted Mon, 13 Sep 2021 06:01:05 GMT by Luigina Gallarello
Hi, I have a similar question. I live in England and I have the Italian citizenship. My dad who is an Italian citizen too and lives in Italy has sadly passed away. He has and insurance life in Italy and I’m the beneficiary. If I transfer the money from there to UK, do I need to pay some tax?
Posted Mon, 13 Sep 2021 14:03:06 GMT by HMRC Admin 17

Hi,
 
If this is just from his estate the this would not need to be reported to the UK for income tax purposes.

Thank you.
Posted Wed, 06 Oct 2021 14:00:34 GMT by Luigina Gallarello
Hi Thank you. it's not an estate and the life insurance it's literally money
Posted Thu, 07 Oct 2021 12:00:34 GMT by HMRC Admin 20
Hi Luigina Gallarello,

If this is just inheritance from a will then this would not be subject to income tax.

If you are the beneficial owner of the policy then this would need to be reported to the UK for tax purposes.

Further guidance on this can be found here:

Gains on foreign life insurance policies (Self Assessment helpsheet HS321)

Thank you.
Posted Sun, 10 Oct 2021 17:30:04 GMT by Luigina Gallarello
Hi, thank you. The life policy was my dad’s life policy and he passed away. He was the owner of the life policy and I am just the beneficiary in case of death which is what happened sadly. Is it considered inheritance? Many Thanks
Posted Mon, 11 Oct 2021 12:39:43 GMT by HMRC Admin 10
Hi Luigina Gallarello

The most common occasions on which a chargeable event gain arises if during the year:  the policy matured or was brought to an end by death of the life insured.

If the policy  is in your father's name, then this is the estate income,  you as an individual will not need to report this to us.

Thankyou.

Regards.

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