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Where Taxpayers and Advisers Meet

Inheritance from Australia

ATricky1
Posts:5
Joined:Sun May 13, 2018 1:30 pm
Inheritance from Australia

Postby ATricky1 » Sun May 13, 2018 1:33 pm

Hi -

Please can someone can help me.

My wife has inherited some money from her father who was born in the UK but emigrated to Australia 40+ years ago. He lived there until his death. Her total inheritance is considerably less than the £325,000 sum before inheritance tax kicks in in the UK. Her father's property and all assets were held in Australia and were liquidated. Inhertances of any amount in Australia do not incurr any inheritance tax.

Given that her situation is probably not the norm could someone please confirm that she should would not have to pay inheritance or income tax in the UK?

Many thanks.

maths
Posts:8507
Joined:Wed Aug 06, 2008 3:25 pm

Re: Inheritance from Australia

Postby maths » Sun May 13, 2018 5:38 pm

It seems likely that for UK IHT purposes the father had acquired an Australian domicile of choice (thus losing his likely UK domicile of origin).

If this is correct then father's estate has no exposure to UK IHT except with respect to UK assets of which you state there are none.

ATricky1
Posts:5
Joined:Sun May 13, 2018 1:30 pm

Re: Inheritance from Australia

Postby ATricky1 » Sun May 13, 2018 5:49 pm

Excellent - many thanks for your time and reply!


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