Inquiry About Inheritance Tax and Overseas Assets

I am writing to seek clarification regarding inheritance tax obligations and the treatment of overseas assets under the UK tax laws. I am set to inherit several assets located outside the United Kingdom (Macau), and I would like to ensure that I comply fully with all relevant regulations. I am a UK citizen and work in the UK, while my mother was not a UK citizen and did not work in the UK. The assets I will inherit include: 1. Stock shares that yield dividend income. 2. Fixed saving accounts that yield interest. 3. £20,000–£30,000 in cash held in an overseas bank account. 4. An apartment valued at approximately £300,000. I have the following questions regarding these assets: 1. Do I need to declare these overseas assets to HMRC? 2. How will the UK tax these assets, particularly regarding inheritance tax, income tax on dividends and interest, and capital gains tax (if applicable)? 3. If I decide to transfer the cash from overseas to the UK (under my father’s name, as he will process this), will this transfer be subject to any additional taxes? I would greatly appreciate it if you could provide guidance on these matters or direct me to the relevant resources or departments for further assistance. Thank you for your time and help. I look forward to your response.

Not HMRC 1. No 2. There is no IHT payable by you. You will need to report the interest and dividends (split between Uk and foreign) each UK tax year once you have inherited, this is taxable income in your name and liable to UK tax. You may be required to do this via Self Assessment if over certain limits/some foreign income etc. Same re any capital gains each year. Each year you complete a SA tx return and in the boxes for interest, dividends, capital gains, foreign income etc you will enter the amoutns for each year (from inheritance) 3. No, unless you have disposed of assets to generate this cash after inheriting, in which case capital gains may apply by reference to any increase in value from inheritance to sale. Given the above I would suggest you sit down with an accountant local to you.

Hi chalmers4c,
Please  refer to:
How Inheritance Tax works: thresholds, rules and allowances
or contact the IHT helpline on 0300 123 1072
Thank you.