Receiving an inheritance from overseas - will I have to pay any taxes?

[Sidge]

Can any of you legal bods help please?

My dad lived in Australia and died recently. His estate is currently undergoing all the necessary legalities and I know that I am likely to receive some money in May/June.

Will I be liable for any taxes here in the UK? It won't be hundreds of thousands, probably around £6-8000.

Thanks in advance.

I am assuming that death duties will be paid in Australia before being released but check with an IFA or your bank.

Sorry about your dad.

no.

Thanks very much for your help. My brother is in finance out there and said probably not but he isn't sure of the UK legal requirements.

I'll also ask him to check with the legal team there, they may know about international money transfers etc.

Sidge sorry to hear about your dad. My father died a few years ago in Australia and I was entitled to half his estate. Inheritance Tax was abolished in Australia a while ago. The solicitor dealing with the estate sorted everything out just wanted details of my bank account and he arranged for what was due to be transferred into it. No tax is due in this country on what you receive.

But you will be taxed on any interest you receive when it is in the bank. Sorry to hear about your dad.

is your dad originally from the UK? It may be that there are duties here if his estate qualifies (depends on what estate comprises of and how large it is -if it is worth less than about £300,000). I only say this as from memory, inheritance tax is quite a wide ranging tax and can be difficult to get out of even if you've lived abroad for years.

poppy34 he was from the UK but lived in Oz for the last 25 years. I don't think his estate meets the inheritance tax threshold here as the remainder of his mortgage will need paying off.

mowbraygirl - thanks for sharing your experience. I hope it's as straightforward for me! I'm sorry you also lost your dad.

inscotland - I don't think it will be in the bank long enough to receive much interest we have already earmarked some for spending and some for paying off debt.