Italy to UK inherited money. Taxed?

[AGoodman]

The location of the assets are irrelevant because the relative was either UK domiciled (probably) or deemed domiciled (certainly).

The executors/administrators of the estate will need to submit a corrective to HMRC in relation to the UK inheritance tax.

I'm afraid it sounds as though 40% tax will be payable on the cash.

It is possible that the insurance policy is not taxable. It will depend on whether it had value to the deceased. If she could have cashed it in the day before her death and received the value, it is likely taxable on her estate. If it was only payable to you then probably not. If it were a UK/international policy then there would be a chance that the policy was held in trust, increasing the chances that it is not taxable, but that is unlikely for a policy issued in Italy.