Property gift

Hi There, I am a Swedish citizen resident in the UK for tax purposes. I am about to receive a property (plot of land) from my mother in Sweden. My mother is a Swedish citizen and resident in Sweden for tax purposes. 1) If it is given as a gift do I need to declare it to hmrc and does it incur any income, capital gains, gift tax? 2) Would the property incur inheritance tax in the UK should my mother pass away within 7 years or does this only apply to UK estates? Thanks!

Hi,

The gift of land to you, that is located in Sweden, is not subject to UK tax.  

However, if you sell the land at sometime in the future, you may have to pay capital gains tax in Sweden (or their equivalent).  

You would also need to declare the disposal of the land to HMRC if a capital gain arises from the disposal of the land and you would be able to claim a foreign tax credit to avoid being taxed twice.

Thank you.