Inheritance Tax

I am resident in the UK. My father was born and resident in South Africa. He is recently deceased and I have inherited death benefits from a retirement annuity in South Africa (tax paid to SA Revenues Service) and a private post-retirement pension & saving plan in Guernsey. Am I liable to tax on these lump sum payments?

Hi,
 

There would be no inheritance tax, as the retirement annuities were not UK annuities and your father was not UK resident.  You will need to declare them both on SA108 of a self assessment tax return, as overseas income. Thank you.

SA108 is for calculation of captial gains or loos on disposals. Please advise what part of the form is used to declare my overseas income.

Hi,
 

Foreign income is on page SA106 . Thank you.

I don't understand the double tax treaty as the "annuity" I have inherited in SA as the beneficiary, wasn't one of the covered items for relief. The annuity has been subject to PAYE in SA so if I just put the income and PAYE information into SA106, is this good enough? I also don't understand why if I had taken the annuity as a lumpsum, I don't appear to have to declare it based on what I have read, whereas taking it as an annuity, I do?

Hi
Yes you will declare the income on the SA106. The difference in the tax is down to legislation.