Inheritance tax on inheritance from abroad

Hi, I understand that inheritance tax is payed by the estate (at least in the UK that is how it works) and only the remaining amounts are payed to any eligible people after this tax is deducted. In that way if someone inherits something all tax is already payed (assuming no gifts have been made beforehand). I am a German citizen living in the UK and being a UK tax resident and might inherit from my German relatives some time in the future. This might be property but also cash. How will this inheritance from abroad to me be taxed and how do I need to declare it? Especially since the property will never be "brought" to the UK. Thanks!

Hi Sascha,
Inheritance tax is only due on UK assets -How Inheritance Tax works: thresholds, rules and allowances
Thank you.

I don't know how to get a question put on this forum. Basically I'm expecting to receive a small amount of inheritance from Australia. I know I shouldn't be taxed on this, but how will HMRC be aware as to not to tax me?

Hi,

As a foreign inheritance is not taxable then we would not be aware of it unless you advised us.

Thank you.

Thanks for your reply. I've sent a letter to HMRC Inheritance tax to say this and asked them to acknowledge my letter and they haven't. How else can I do this? I tried to ring previously and this type of situation isn't one of the options. It's very frustrating to be honest.

Hi,

Inheritance tax is only due on UK assets. Therefore inhertance that you receive from any where that is not the UK is not taxable and does not need to

be declared. You will not be taxed on it and there is no need to contact HMRC.

Thank you.

 

Thank you for replying.