Tax on inheritance abroad

[SJA]

I'm inheriting a property and a sum of cash from a family member who passed away outside of the UK and has never had any connection to the UK. In the jurisdiction that applies to him, tax is payable by the person who receives an inheritance. I'm resident and ordinarily resident in the UK.

* Which inheritance tax rules apply in this case ?
* What tax rates might I expect if taxes are payable in the UK ?

With thanks,

SJA

[tax_schmax]

In simple terms, your inheritance should not be taxed in the UK. The profits or income generated by you from your inheritance may be taxed in the UK.

[maths]

I assume the deceased possessed no UK situs assets on death and was not UK domiciled.

Assuming this to be so, then no UK IHT arises and the succession to the deceased's property is determined according to the laws of the deceased's domicile or nationality.

In civil law jurisdictions (eg Italy, Germany) it is common for the heirs to bear any death tax (whereas in the UK the deceased's estate bears the IHT) and the quantum of tax typically varies according to the relationship of those inheriting to the deceased (eg son, sister etc).

In short, you will only bear any death tax (if any) in the country of which the deceased was domiciled/national.