Beneficiary of US Fixed Term Annuity

A Relative (US Resident / US Citizen) at the time of her death was in receipt of a Fixed Term Annuity. The Annuity started payment in 2016 and is due to pay a fixed sum, monthly for 10 years. There was no beneficiary to the annuity so the annuity transferred to her Estate. I am the beneficiary of the Estate (UK Resident / UK Citizen) and the annuity has now transferred to me. There is no option to cash in the annuity and therefore it will pay out, (to me,) a fixed sum until 2025. The annuity is paid with no US tax withholding. Do I need to declare these payments on my UK self assessment (foreign income), or are they classed as my inheritance and therefore free from Tax. (There are no interest Payments).

Hi Ismiatonreet,

You will need to declare this as foreign income.

Thank you.