Inheritance Tax from Abroad

[BumbleBee007]

Hello everyone

I'm really confused about inheritance tax.

What happens to Estate and property inherited from your parents that live abroad and have never lived in the UK? As a UK resident, would that need to be declared here and have the local inheritance tax applied?

I would really appreciate some advice as this topic greatly confuses me. Surely, given that the tax in theory is paid by the executor/deceased, it wouldn't make sense for it to be paid in the UK if they've never lived here. But the information I have found is sometimes contradicting.

Thanks
BumbleBee007

[BumbleBee007]

Oops I think I posted on the wrong forum, didn't realise this was the Welcome Forum! Really sorry....

[des8]

Basically if a British person dies outside the UK and their permanent home (where they’re “domiciled”) is abroad, IHT is only paid on their UK based assets.

This includes property or cash held in bank accounts.

However I assume your parents were not British, and as they never lived in the UK and presumably had no UK based assets there should not be any liability for IHT.

However , to put your mind at rest, HMRC realising these matters are complicated have set up their own helpline :Inheritance Tax: general enquiries - GOV.UK (www.gov.uk)