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Where Taxpayers and Advisers Meet

Inheritance from abroad bring to UK

kirsty.broome.83
Posts: 2
Joined: Wed May 15, 2019 11:12 am

Inheritance from abroad bring to UK

Postby kirsty.broome.83 » Wed May 15, 2019 11:27 am

HI,
Please could somebody help.
My partner is due soon to inherit a property abroad, we are both UK citizens and live in the UK [although he has dual Singaporean citizenship as he grew up there]. Once the property is legally in his name, and if he decides to sell it and bring the money from it to the UK, is there any kind of tax at all that might be due from the UK??? I understand that inheritance tax in the UK is only payable on amounts of around £325K or more, and this property he will inherit will be worth less than half of that, and surely that wouldn't be applicable anyway as the property inherited isn't in the UK??

Any help would be much appreciated.

AGoodman
Posts: 770
Joined: Fri May 16, 2014 3:47 pm

Re: Inheritance from abroad bring to UK

Postby AGoodman » Wed May 15, 2019 2:43 pm

UK IHT is only paid by the estate, not the beneficiaries/heirs so your partner will not have any IHT. The estate will only be subject to IHT on a Singapore property if the deceased was UK domiciled or deemed domiciled.

He could be liable for capital gains tax if the property is sold for more than the probate value (i.e. market value at the date of death). Any increase would be subject to CGT at 18/28% (assuming it is residential property) after deduction of the annual exemption (now £12,000). He will likely receive credit here for any Singapore tax paid on the sale.

kirsty.broome.83
Posts: 2
Joined: Wed May 15, 2019 11:12 am

Re: Inheritance from abroad bring to UK

Postby kirsty.broome.83 » Thu May 16, 2019 12:25 pm

ok,

thanks for your help.
So in laymen terms, if the property hasn't made a profit by the time of selling it then the money from the sale could be transferred to the UK without being subject to any form of tax in the UK???


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