If you are treated as domiciled in the UK, you will pay inheritance tax on your worldwide assets (even if those assets are situated outside of the UK). This may result in tax being paid twice on those assets – both in the UK and abroad.
Do I need to declare an inheritance to HMRC?
Yes. You’ll need to notify HMRC that you’ve received inheritance money, even if no tax is due. If it is, you’ll be expected to pay the tax within six months of the death of your loved one. This will normally be taken out of the deceased’s estate, and the executor will usually take care of it.
Can you have 2 wills in 2 different countries?
If we ask you, can you have two wills in different countries? The simplest answer that can be given is, yes. A person can establish their patrimonial planning in different countries in which they have both assets and/or citizenship, something very common nowadays.
Do you need to make a will if you own property abroad?
If you own any assets abroad or are considering investing in a holiday property in a foreign country, it is important that you think about making a will or reviewing your existing will to ensure that your wishes are carried out and your overseas assets pass to your intended beneficiaries.
What are the tax implications of owning property abroad?
We look at the tax implications of owning property abroad, including capital gains tax, inheritance tax and income tax from rentals. What happens to your IHT liability if you have a property at home and abroad?
Do you have to pay stamp duty when you buy a property abroad?
However, in the consultation document, the outcome that is pointed to, is the fact that there will be additional stamp duty payable if you buy a property when you already own a property abroad.
Do you get double tax relief if you own property abroad?
Some double taxation relief will be afforded but if the death duty rate in the country where the property is located is lower than the UK rate, the relief may just be restricted the amount of the tax paid abroad meaning that there is a balancing payment due in the UK. The process by which IHT is paid usually differs abroad from the UK.
