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Foreign Inheritance - Taxable?

3 replies

ilovemydogandmrobama2 · 02/02/2020 14:52

Am about to receive an inheritance from my grandmother's estate in the USA. I am American, but permanent resident in the UK, pay UK taxes have job and mostly in employment over past 20 years.
Will I need to pay tax on this? The HMRC web site isn't entirely clear to me.
Thank you

OP posts:
haveuheard · 03/02/2020 17:25

In the UK you don't pay tax on inheritance, tax is paid by the estate before its distributed. So you need to see what the rules are in the USA, where the estate is being administered.

ilovemydogandmrobama2 · 03/02/2020 20:12

Thank you - I have been advised that all death duties have been paid.

My grandmother, whose estate the inheritance comes from, was a bit eccentric and reminded me before she died of the time she left my grandfather at the age of 85 for a brief period, but not before she splurged $20,000 on fine bone china...

OP posts:
languagebridget · 04/02/2020 10:30

Do you file your US taxes each year, as a USA citizen you are taxed on your worldwide income and must file every year even if you live overseas. Probably no tax to pay due to foreign tax credits but if you have any children under 17 you may be able to claim US child tax credit. If you have inherited US pension funds there maybe some US reporting.

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