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TaxRobin
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Experience:  International tax
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My wife will inherit money in the not to distant future from

Resolved Question:

My wife will inherit money in the not to distant future from Austria.
She has lived and worked in the UK for the past 40 years and retains her Austrian passport. What are the tax implications should she bring the funds back to the UK?
Submitted: 2 years ago.
Category: Tax
Expert:  TaxRobin replied 2 years ago.
Hello and thank you for allowing me to assist you.
Usually the ‘executor’ of the will or the ‘administrator’ of the estate pays Inheritance Tax using funds from the estate.
Inheritance Tax is paid if a person’s estate (their property, money and possessions) is worth more than £325,000 when they die. This is called the ‘Inheritance Tax threshold’. If the deceased was not a UK resident then then their estate is not under UK tax laws.
If the will says the Inheritance Tax should be paid out of the assets she has inherited, the executor of the will or administrator of the estate will usually pay it. BUT this will be paid in the resident country of the deceased.
Customer: replied 2 years ago.

Obviously the money will come from Austria and therefore UK Inheritance Tax is not applicable.

Do we have to inform HRMC that money is being received?

Expert:  TaxRobin replied 2 years ago.
No, of course any earnings after the money is received is taxable.
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