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Where Taxpayers and Advisers Meet

Inheritance Tax Query

PKBANERJI
Posts:3
Joined:Wed Nov 08, 2017 12:12 pm
Inheritance Tax Query

Postby PKBANERJI » Wed Nov 08, 2017 12:16 pm

I am a British Citizen. I have inherited a flat in India from my mother. Do I have to pay UK inheritance tax on this?

pawncob
Posts:5090
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Inheritance Tax Query

Postby pawncob » Wed Nov 08, 2017 4:35 pm

No. IHT is paid on the estate and is settled by the Executors in India.
You may have to pay CGT if you dispose of it.
With a pinch of salt take what I say, but don't exceed your RDA

PKBANERJI
Posts:3
Joined:Wed Nov 08, 2017 12:12 pm

Re: Inheritance Tax Query

Postby PKBANERJI » Wed Nov 08, 2017 4:57 pm

Thank you for the clarification. Does the same apply to a small quantity of shares which were held by my mother in an Indian company?
I have not yet had the shares transferred in my name but when I do should I assume that I do not need to pay IHT in the UK?
There is no IHT in India.

AGoodman
Posts:1738
Joined:Fri May 16, 2014 3:47 pm

Re: Inheritance Tax Query

Postby AGoodman » Wed Nov 08, 2017 5:14 pm

Yes, same rules apply.

IHT on death is only payable if the deceased was domiciled in the UK and/or the assets were in the UK.

AGoodman
Posts:1738
Joined:Fri May 16, 2014 3:47 pm

Re: Inheritance Tax Query

Postby AGoodman » Wed Nov 08, 2017 5:18 pm

and the estate/executors always have to pay any UK IHT that is payable with the exception of some gifts made within seven years before death. There, the default position is that the recipient of the gift pays the tax on the gift, but the recipients of gifts get first dibs at the nil rate band. This means that tax is only payable by gift recipients where the deceased has been making gifts of at least £325k in aggregate over the 7 year period.

PKBANERJI
Posts:3
Joined:Wed Nov 08, 2017 12:12 pm

Re: Inheritance Tax Query

Postby PKBANERJI » Wed Nov 08, 2017 5:42 pm

Thank you!


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