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US/UK inheritance tax question

3 replies

Inheritancetax · 20/04/2022 07:06

My US relative died and amongst other distributions, generously left 6 relatives a low six figure sum each. Two of the beneficiaries are in the US and four of us are UK citizens living in the UK.

The estate was worth less than the $11m US threshold so we have been told there is no inheritance tax due to paid by the US executors.

Does anyone know if UK recipients are therefore likely to have to pay UK IHT? (we will take professional advice but I wondered if anyone might have a sense in the meantime)

OP posts:
Crazykatie · 20/04/2022 07:18

If your relative paid tax (domiciled) in the US any inheritance tax would be paid there, any cash you inherit probably will not attract UK taxation, if you invest that in the UK it then is liable in the usual way.

Inheritancetax · 20/04/2022 07:23

Thanks. Yes she was domiciled in the US and paid income tax etc there but we have been told that no estate tax is due there due to their $11m threshold which made us concerned that UK beneficiaries may be subject to UK inheritance tax.

OP posts:
vinoandbrie · 23/04/2022 09:21

No, you won’t be.

It is the estate that pays inheritance tax, not those inheriting.

So if there is no inheritance tax on the estate, then that’s that.

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