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anonguest

Bringing Proceeds Of Overseas Property Sale To The Uk

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Not really sure if this, or any of the other, forum is suitable for this question......

What, if any, is the potential tax implication/liability on someone who intends to bring into the UK a £150,000+ sum that has been obtained as (a 1/3rd share) of the proceeds of sale of recently deceased relatives property/estate that was overseas. The beneficiaries of the other 2/3rds share remain overseas and will keep that money overseas.

By bringing this money to the UK (to aid buying a property for ones Self) is there any CGT, inheritance or other tax likely to be liable?

Ordinarily I'd say how would HMRC even know about it if they are not notified, except that the sum is large enough to be possibly 'flagged up' by the banking system in this modern computerised world? as well as the fact that the money will be originating from overseas (but not a dodgy third world or embargoed country).

Edited by anonguest

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Not really sure if this, or any of the other, forum is suitable for this question......

What, if any, is the potential tax implication/liability on someone who intends to bring into the UK a £150,000+ sum that has been obtained as (a 1/3rd share) of the proceeds of sale of recently deceased relatives property/estate that was overseas. The beneficiaries of the other 2/3rds share remain overseas and will keep that money overseas.

By bringing this money to the UK (to aid buying a property for ones Self) is there any CGT, inheritance or other tax likely to be liable?

Ordinarily I'd say how would HMRC even know about it if they are not notified, except that the sum is large enough to be possibly 'flagged up' by the banking system in this modern computerised world? as well as the fact that the money will be originating from overseas (but not a dodgy third world or embargoed country).

Firstly, unless you are a non-dom who pays tax on foreign earnings on the remittance basis, it makes no difference whether you bring the money into the country or not.

Inheritance tax is paid by the the estate of the deceased, not the recipient, so if they had nothing to do with the UK, there will be no inheritance tax to pay.

If assets went up in value between your relative dying and them being sold, there would be Capital Gains Tax to pay, subject to all the usual reliefs you can claim.

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Not really sure if this, or any of the other, forum is suitable for this question......

What, if any, is the potential tax implication/liability on someone who intends to bring into the UK a £150,000+ sum that has been obtained as (a 1/3rd share) of the proceeds of sale of recently deceased relatives property/estate that was overseas. The beneficiaries of the other 2/3rds share remain overseas and will keep that money overseas.

By bringing this money to the UK (to aid buying a property for ones Self) is there any CGT, inheritance or other tax likely to be liable?

Ordinarily I'd say how would HMRC even know about it if they are not notified, except that the sum is large enough to be possibly 'flagged up' by the banking system in this modern computerised world? as well as the fact that the money will be originating from overseas (but not a dodgy third world or embargoed country).

I think this depends on too many factors.

Go and see a reputable tax advisor/account who specialises in this kind of thing for half an hour. It may cost you a bit of money to begin with but they will probably save you a lot more in the long run.

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I think this depends on too many factors.

Go and see a reputable tax advisor/account who specialises in this kind of thing for half an hour. It may cost you a bit of money to begin with but they will probably save you a lot more in the long run.

Agreed. I was just hoping to get some initial indicators as to what/if any liabilities there may be, before such a meeting. next step is to actually find the appropriate sort of advisor? I am assuming that such professionals have indemnity insurance or such like so that if they screw up advice wise, and at some later date HM Govt wants money, compensation can be claimed?

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Agreed. I was just hoping to get some initial indicators as to what/if any liabilities there may be, before such a meeting. next step is to actually find the appropriate sort of advisor? I am assuming that such professionals have indemnity insurance or such like so that if they screw up advice wise, and at some later date HM Govt wants money, compensation can be claimed?

The appropriate sort of advisor is a qualified tax accountant who is a member of the Chartered Institute of Tax, the Association of Chartered Certified Accountants, or the Institute of Chartered Accountants in England, Scotland or Ireland.

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Firstly, unless you are a non-dom who pays tax on foreign earnings on the remittance basis, it makes no difference whether you bring the money into the country or not.

Inheritance tax is paid by the the estate of the deceased, not the recipient, so if they had nothing to do with the UK, there will be no inheritance tax to pay.

If assets went up in value between your relative dying and them being sold, there would be Capital Gains Tax to pay, subject to all the usual reliefs you can claim.

The important question is was the person who died UK Domicile by birth? If so unless was that domicile lost (not easy! ) . If not UK inheritance tax is laible on the whole estate.

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jonb says:- Inheritance tax is paid by the the estate of the deceased, not the recipient.

.. which is correct in the UK.

However, in France and a few other countries (and the original post doesn't say where the property is), IHT is paid by the recipient, so the advice, given above, to consult an expert is very sensible.

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The appropriate sort of advisor is a qualified tax accountant who is a member of the Chartered Institute of Tax, the Association of Chartered Certified Accountants, or the Institute of Chartered Accountants in England, Scotland or Ireland.

Many thanks to all of you for your all your replies and sparing your time and thoughts. Much obliged. have enough info now to proceed appropriately.

To clarify and answer last respondent, the relative in question was not a UK citizen. The money used to purchase the (now sold) overseas property in question never had any UK connection.

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jonb says:- Inheritance tax is paid by the the estate of the deceased, not the recipient.

.. which is correct in the UK.

.

The tax on PETS/ ICTS which become chargeable on death within seven years is paid for by the recipient.

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The tax on PETS/ ICTS which become chargeable on death within seven years is paid for by the recipient.

True, but that is not the scenario described in the original question.

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  • 309 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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