How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask taxadvisor.uk Your Own Question
taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4995
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
54961312
Type Your Tax Question Here...
taxadvisor.uk is online now

My father passed away in 2012 in Japan and I inherited

Resolved Question:

Hi
My father passed away in 2012 in Japan and I inherited some Japanese share which I recently sold and transferred money to UK. Will I be considered a inheritance? It was worth less than £80,000 in total. It was sold at the same price as the price my father originally bought. So I am hoping that I will not have top pay inheritance tax.
Thanks and regards
Reiko
Submitted: 2 years ago.
Category: Tax
Expert:  taxadvisor.uk replied 2 years ago.
Hello and welcome to the site. Thank you for your question.

For capital gains tax purposes, your cost base is the valuation price at the time you inherited the shares and not its original cost price. If you have sold the shares for a price greater than the valuation at the time of inheritance, then the gain would be chargeable to CGT.

For inheritance tax purposes, the value of those shares would have formed part of your late father's estate and IHT would have been assessed for probate, if the estate exceeded his threshold for IHT.

You would only be liable to inheritance tax if the estate did not have enough funds to IHT if any.

I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

Customer: replied 2 years ago.

Hi

Thank you for your answer.

I did not inherit anything other than the share.

So does it mean I do not have to pay or I am liable for capital gains tax?

The price I sold at was higher than the price at the time I inherited.

Kind regards

Reiko

Expert:  taxadvisor.uk replied 2 years ago.
Reiko, thank you for your prompt reply.

As you sold the shares for a price greater than what the value of those shares was when you inherited them, the gain would be chargeable to capital gains tax.

You would claim your annual gains allowance against this gain (£11,000 in current tax year) and the balance would be taxed at CGT rate of 18%, 28% or a combination of both rates depending on your taotal income in the tax year when the sale took place.

I hope this is helpful and answers your question.
taxadvisor.uk and other Tax Specialists are ready to help you
Expert:  taxadvisor.uk replied 2 years ago.
I thank you for accepting my answer.

Best wishes.