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Posted Fri, 25 Nov 2022 22:17:25 GMT by Kev
Hi, I’m a BN(O) visa holder planning to apply for PR eventually. My father/mother, who has not applied for the BN(O) visa and is currently in Hong Kong, may need to apply as dependent when either of them passes away. Hence there are 2 scenarios: 1. If he/she decides to stay in Hong Kong, and passes away - I assume there will be no inheritance tax implications should I inherit my parent’s properties and stocks/bonds, other than the capital gain tax for the added value at sales vs the time when they are inherited? Would you please confirm or advise otherwise? 2. If he/she sells everything, transfers all the cash to my UK bank account as gift, then come to live with me as dependent - Will there be any tax implication? - Will this change if: i. He/she passes away within 7 years? ii. Eventually he/she becomes UK domiciled or even PR after several years? Thank you very much for your advice.
Posted Tue, 29 Nov 2022 13:02:08 GMT by HMRC Admin 19

You can see guidance here:

How Inheritance Tax works: thresholds, rules and allowances

Thank you.
Posted Tue, 29 Nov 2022 13:36:25 GMT by Kev
Thanks HMRC Admin 19, but I do have some follow up questions after going through the rules. A simplified case would be, my mother who was not a domiciled, gave me her property in Hong Kong before she enters the UK as my dependant, then within 7 years she passes away while having obtained domiciled status by living with me in the UK in her last 3 years. Does that incur inheritance tax on the property? And what if she sold the property before coming and give me the cash as gift? Thanks again for your help.
Posted Tue, 29 Nov 2022 15:03:26 GMT by HMRC Admin 19

Please contact the Inheritance Tax team for advice:

Inheritance Tax: general enquiries

Thank you.

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