Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Tue, 15 Oct 2019 09:05:00 GMT by HMRC Admin 5
I received an inheritance from my late father in South Africa, paid into a South African account - any tax due has been paid in South Africa before it was paid over to me. The money (£35,970) was then transferred to my UK bank account on 6/6/2017 and any interest received while in my UK account has been declared in my return, but:
Do I declare this inheritance amount in my self assessment form and if so where?


As long as the inheritance was just a cash payment from the estate of your late father, then this does not need to be declared on the Self Assessment return to HMRC.

 
Posted Fri, 06 Dec 2019 11:55:19 GMT by Angela Thompson
I have received an inheritance from my late mother in US. All tax due has been sorted and paid in US before it was paid to me. The amount was USD90,000 (£69,086.58). and was credited into my U.K. bank account on 29/08/2018. Do I need to declare this whole amount in my self assessment return?
Posted Fri, 06 Dec 2019 14:14:00 GMT by HMRC Admin 5


Hello,

Thank you for your question.

Where this was a cash inheritance there is no income tax liability in the UK.

There is no need to enter this on your return.

Please remember for future that any interest gained from investing the monies will be taxable and need to be declared.
Posted Fri, 06 Dec 2019 14:22:14 GMT by Angela Thompson
Thank you for confirming!
Posted Mon, 11 Jan 2021 14:01:37 GMT by TrishK Kernan
I inherited a property in the USA. I sold the property last year and transferred the funds to the UK to a NS&I account. Do I report this on my tax return, and if so where? I have included the interest received on my tax return.
Posted Fri, 15 Jan 2021 10:20:02 GMT by HMRC Admin 15
Hi You should report a capital gains on your return in the year you sold the property if your gain was above the annual exempt amount of £12,000 or if your disposal price was more than £48,000.  If you had to pay any Capital Gains tax in the USA you would be able to claim foreign tax credit relief against any UK liability.  Foreign-tax-credit-relief-capital-gains-helpsheet 261  Thank you
Posted Mon, 18 Jan 2021 12:42:04 GMT by TrishK Kernan
Very helpful, thank you.
Posted Sun, 31 Jan 2021 08:26:52 GMT by Carole.nw
Hello there, I am transferring money from France to buy a property in the UK. The money comes from: - An inheritance from my grandparents (3 years ago) - Donations from my grandparents (when they were still alive) and from my dad (few donations between 1999 and 2019) All tax due has been sorted and paid in France before it was paid to me. I will also receive a loan private loan from my dad. He will declare it on his French tax return. Do I need to declare anything? Besides do I need to pay tax when transferring the money from France to the UK? Thank you
Posted Sun, 31 Jan 2021 12:13:21 GMT by HMRC Admin 5
Hello Carole.

You would not be liable to pay tax in the UK on any of this income you have mentioned. 
You do not need to advise HMRC of these amounts. 

Thank You.
Posted Fri, 05 Feb 2021 22:30:36 GMT by ELEL
I inherited a property overseas from a relative who was a non-UK domiciled individual. I didn't rent it out and I am planning to sell it. Do I need to pay capital gain tax in this case after I have sold the property? If yes, how do I calculate the capital gain or loss? I will have the selling price (plus cost spent in selling it) but I do not have the buying price as I didn't buy it. Thank you.
Posted Sat, 06 Feb 2021 09:55:49 GMT by PaulRK
My wife’s father died in Canada last year. He left CAN$ 160,000, currently sitting in a current account in Canada, of which CAN$ 80,000 is to be split between his two UK-based grandchildren. Our daughter is now looking to buy her first house here in the UK. Can CAN$ 40,000 be transferred directly to her UK bank account without any liabilities? There are no liabilities in Canada.
Posted Tue, 09 Feb 2021 15:29:34 GMT by HMRC Admin 5
Hello ELEL

You will need to report  Capital gains tax when you sell the property.
You should also check with the Country where the property is based.  
You will work out your gain by using the market value of he property when it was given to you.
See link below in how to work out capital gain tax when you sell property 
Capital Gains Tax
Posted Wed, 10 Feb 2021 11:40:28 GMT by HMRC Admin 5
Hello PaulRK.

If this is Capital from the estate, there is no income tax implications of the money being transferred to your daughter's account

Thank You.
Posted Fri, 19 Feb 2021 22:26:29 GMT by iankey17
I'm a German citizen living in the UK for a decade. My German father passed away in October 2017 and my German mother in November 2019. My sister, which acts as administrator of a will, sold the flat my parents were owning and living in for over 35 years in September 2020. The flat sold for EUR 375,000.00 and as we are 4 siblings, my share was EUR 93,750.00. After the sale the money of my share was transferred to my bank account in the UK. My big question is now if I have to disclose the sale in my Self Assessment tax return and if yes, how to calculate any capital gain? At the time my parents passed away, there haven't been any valuations of the property by the reason that any sale would have been already outside the speculative period, because by German law, the time my parents owned and lived in the flat will passed on to us, the inheriting children, regarding the speculative period. The only thing I could find out was that the average price for flats in Germany rose by around 5% in the period from my mother's death to the sale of the flat. How do I find out what my capital gain is? What documents will I need to support or proof the accuracy of any capital gain calculation?
Posted Wed, 24 Feb 2021 08:43:13 GMT by HMRC Admin 11
Hi iankey17,

Capital Gains Tax will be due if you owned the property when it was sold.  If this is the case, you will report your 1/4 share, sale price minus market value when property went into your name less legal fees/estate agent fees for selling property.

see link below for more information regarding Tax on selling property.  

If the estate sold the property and  you received the capital from the estate, then you as an individual have no capital gains to report. 

Tax when you sell property

Thank you.
Posted Sat, 27 Feb 2021 23:05:25 GMT by irina savelieva
I have got an inheritance from my grandmother flat in Russia and sold it for about $20 USD. I am a UK citizenship. The money were transferred to my account in April (after 6th of April) 2020. Should I declare this and what taxes should I pay. My income about £3000 per year.
Posted Mon, 01 Mar 2021 12:24:06 GMT by Nina680
I am a UK resident and inherited a property and cash in Russia from non-UK resident. Do I need to pay an inheritance tax on either property or cash?
Posted Wed, 03 Mar 2021 13:51:29 GMT by HMRC Admin 4
Hi,
If you are UK resident and have an overseas property, you will notify HMRC when you dispose of the property for Capital Gains Tax purpose  or if you receive rental income from the propety,  the Capital (cash) that was left  to you does not need to be reported to HMRC but any income you receive does e.g foreign interest.   You may need to check if any tax implications  with the tax auhtorities in Russia.
Posted Wed, 03 Mar 2021 14:22:46 GMT by HMRC Admin 5
Hello Irina.

If  you owned  the flat when it was disposed of and there is a capital gains then you will report the overseas Capital Gain. 
You may not need to report depending on the amount of sale /gain etc. see link below re. when to report capital gain
Tax when you sell property

Thank You.
Posted Fri, 05 Mar 2021 16:13:32 GMT by momoko k
Hi, My parents moved to UK and they are UK residents. But me as their daughter, I am not uk resident and not living in UK. I am now living in the property belongs to them in my home country. ( i.e. overseas property of my parents) When they die, do I need to pay the UK inheritance tax in order to inherit the house I am living now ( non-UK properties)? But I am not UK resident. And in my home country, there is no inheritance tax. thank you. Momoko

You must be signed in to post in this forum.