Foreign inheritance (from EU country) and tax implications

Hi, I've received an inheritance from my father who was based in Poland (all assets are located in Poland). I'm a dual Polish-British citizen and I complete a self-assessment every year. The inheritance will consist of cash as well as shares in a family-owned (non-listed) business for which there is no current valuation available. Given this I have a few questions: - Do I need to declare the inheritance to HMRC and if yes what is the process to follow / forms to complete? Do simply I indicate this on my self assessment when I complete it at the end of the tax year? - Regarding the cash sum - are there any tax implications of bringing those funds to the UK? - Regarding the shares in the family business - in a scenario where I may want to sell the shares in the future or my family wants to sell the company what is then the approach to capital gains calculation? My question is whether we should establish a current true valuation of the company for future tax calculation purposes? Are there any other considerations of owning such shares from a tax perspective that I should be aware of? It would be very helpful if someone could point me to the relevant guidance on HMRC website if such exists because I couldn't locate it. Thank you in advance!

Hi,

Inheritance tax is only paid on UK assets (once the threshold has been met) so there will be no need for you to declare this.
You do not need to declare the transfer of the money to the UK. However, you will need to obtain a value for the shares at the date your father passed away as you may be liable to capital gains tax should you sell these at a later date.

Thank you

Hello, I have a similar situation my brother an Italian citizen and resident recently passed away. My sister and I inherited a sum of money (below the threshold) all the money are in Italy and I am not planning to take them to the uk. I am a dual British and Italian citizen and resident in the UK. Do I have to declare this sum to HMRC? Thanks

Hi,
Inheritance tax is only due on UK assets. Therefore inheritance that you receive from anywhere that is not the UK is not taxable and does not need to be declared. However, You will need to declare any income that is then generated from these assets.
Thank you

Hi, I have inherited a house in Spain, I've paid all the relevant taxes in Spain and am now in the process of selling the house. The sale price is below the the price set by the lawyers in the inheritance so there is no capital gains on the property, it is below the UK inheritance tax threshold, what are the tax implications of transferring the money to the UK?

Hello, My father, resident in the Channel Islands, wishes to transfer while he is still alive a cash advance to me which is part of the inheritance he has left to me in his Will. Do I need to declare this advance of inheritance on my tax return, and is there any tax implications for me by receiving this cash ?

Hello, I received some cash inherited from my father who was based in France (assets located in France). Inheritance tax has been paid in France. I'm a dual French-British citizen who lives in the UK and completes a self-assessment every year. Given that the inherited sum is below the taxable uk threshold, do I need to declare it in my self-assessment for 2024-2025? If so, is there a specific form? Many thanks in advance.

Hi ,
 

The disposal will need to be calculated in pounds sterling using just and reasonable exchange rates that applied at the time you inherited the property and the disposal value.  Whether there is a gain or a loss, you will need to report the disposal of the property in a self assessment tax return, in the capital gains section of the tax return and again in the foreign section of the tax return, where you can claim up to 100% of a foreign tax credit to set against any UK capital gains liability. Thank you .

Hi K Rab,
There are no Income Tax implications on the giving or receipt of a cash gift. Any income you generate from the cash gift, such as bank interest is taxable and should be declared.  
As the Channel Islands are not part of the UK for tax purposes, there is no UK Inheritance Tax implications for your father, but he may have to consider whether there will be in the Channel Islands.

Hi JB1975,
No, there is no need to declare this to HMRC. Your inheritance is not liable to Income Tax or UK Inheritance Tax.  Any interest your inheritance generates, is taxable income and should be declared in a Self Assessment tax return.
Thank you.