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 TaxRobin Your Own Question
TaxRobin, Tax Consultant
Category: Tax
Satisfied Customers: 17125
Experience:  International tax
Type Your Tax Question Here...
TaxRobin is online now

I'm a Austral***** *****ving and residing in the U.K. Have

This answer was rated:

Hello, I'm a Austral***** *****ving and residing in the U.K. Have been for decades. Some Australian relatives have passed away recently and I've been left with a share of a couple of estates. This includes a share in two of their houses. I understand their is no inheritance tax in Australia, but there is in the UK. What sort of complications will arise from me receiving a fairly reasonable amount of money and transferring it into my UK accounts?
HelloThere is an Inheritance Tax in the UK but that would be on an estate that was subject to UK tax law. The estate of the person who died usually pays Inheritance Tax. You may need to pay Inheritance Tax if the estate can’t or doesn’t pay it. If the deceased estate was not taxable in the UK then your inheriting would not be taxable.You don’t usually pay tax in the UK on anything you inherit at the time you inherit it.You may need to pay:Income Tax on profit you later earn from your inheritance, eg dividends from shares or rental income from a propertyCapital Gains Tax if you later sell shares or a property you inheritedInheritance TaxYou are required to click a positive rating if I am to be credited with the response.
Customer: replied 2 years ago.
Would I have to pay capital gains tax if the Australian property was sold and the money moved to the UK?
HelloIf you inherit property and then sell yes, you will pay CGT on the gain.
Customer: replied 2 years ago.
Also the properties were bought before Australian capital gains tax was brought in. Does that still count?
Yes because you inherited after. This is UK law not ATO.
Customer: replied 2 years ago.
Okay, you've been very helpful so far. Any idea how I could work out the sort of capital gains tax I would have to pay?
That is beyond the subject of your original question. Per site rules you are supposed to complete this thread (rate) and then post your new question
TaxRobin and other Tax Specialists are ready to help you