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UKSolicitorJA
UKSolicitorJA, Solicitor
Category: Law
Satisfied Customers: 4312
Experience:  English solicitor with over 12 years experience
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My husband has died and I am the sole beneficiary of his Australian

Resolved Question:

My husband has died and I am the sole beneficiary of his Australian will all of which was straightforward and has been settled. He had a property in the UK and a small amount of money in a bank but had no will over there. How do I claim his UK estate and will I be liable for Inheritance Tax?
Submitted: 3 years ago.
Category: Law
Expert:  UKSolicitorJA replied 3 years ago.
Hello,

How much are his UK assets worth?
Customer: replied 3 years ago.

I think the London leasehold apartment is worth approximately 350,000 - 400,000 sterling but the money in the bank is only about 6,000 pounds sterling. In case it is relevant, I am Australian but lived in the UK for 22 years and my husband was Italian with joint Australian citizenship.

Expert:  UKSolicitorJA replied 3 years ago.
Thank you.

The estate is worth more than £325,000 and I therefore above the inheritance tax threshold in the UK.

If you are domiciled in the UK, there will be no inheritance tax to pay but if you are not domiciled in the UK, then inheritance tax will be payable.

As there is no Will, you need to apply for a grant of representation before the property can be transferred to you.

As for the money in the bank, you should contact the bank, they may just pay you the money without asking for any grant of representation as the amount is small.

See here:http://www.hmrc.gov.uk/inheritancetax/intro/probate-process.htm

Hope this helps
UKSolicitorJA and other Law Specialists are ready to help you
Customer: replied 3 years ago.

I live in Australia but divide my time between here and the UK and have a small British pension and bus pass as well as a bank account over there. Does any of this make a difference?

Customer: replied 3 years ago.

How much would I have to pay in inheritance tax and isn't there a reciprocal amount or a credit passed on between husband and wife which cuts down the amount payable. Also, this is a tax and I think I have to pay whatever is owing within a certain time after my husband's death. Is that so?

Expert:  UKSolicitorJA replied 3 years ago.
Inheritance tax is payable within 6 months of the death.

Domicile is a very complex subject and it usually depends on where your permanent home is etc. see here http://www.hmrc.gov.uk/international/domicile.htm

I would suggest you appoint a local solicitor to assist with the process of applying for grant of representation as you are in Australia.

All the best
Customer: replied 3 years ago.

I got cut off half way through my reply. I am going to London to deal with this in person. Can I claim my airfare to get there?


 


My other question was about the nil band rate allowance between spouses. As my husband never used his can I get an exemption on this or is it only applicable on my estate when I die?

Expert:  UKSolicitorJA replied 3 years ago.
You cannot claim your air fare.

Like I said, unless you are domiciled in the UK, you cannot claim the spousal exemption. If you are domiciled in the UK, then you can, see here: http://www.hmrc.gov.uk/inheritancetax/intro/transfer-threshold.htm

Customer: replied 3 years ago.

I have to submit Inheritance Tax Account Form IHT400. Would I be able to do that from here? If I can't pay any tax payable by 30th April when it is due, do you know at what rate of interest I would be charged? I won't know if I am over the $325,000 until the flat has been valued.

Expert:  UKSolicitorJA replied 3 years ago.
I will reply to you in 2 hours as am tied up currently.
Expert:  UKSolicitorJA replied 3 years ago.
Yes, you may fill in the form IHT400 from there and send it to HMRC in the UK by post or courier.

Interest rate would be payable from 1 May. You should use this interest rate calculator to calculate how much interest will be payable: http://www.hmrc.gov.uk/tools/inheritancetax/interest-rate-calculator.htm

All the best