Answers · UK 2025/26
Is money inherited from abroad subject to UK tax?
If you are a UK resident inheriting from abroad, the inheritance is generally not subject to UK income tax or CGT. However, the overseas estate may be liable to UK Inheritance Tax if the deceased was UK-domiciled.
Full answer
Whether an overseas inheritance is taxable in the UK depends on the domicile status of the deceased, not the residency of the beneficiary. If the deceased was domiciled in the UK at the time of death, their worldwide estate including assets abroad is subject to UK Inheritance Tax at 40% above the Nil Rate Band of £325,000 plus the Residence Nil Rate Band of £175,000 if applicable. If the deceased was not UK-domiciled, only their UK-sited assets fall within the scope of IHT. As a beneficiary, you do not pay UK income tax or CGT simply on receiving an inheritance. However, any income or gains arising from inherited assets after you receive them will be taxable in the usual way. Double taxation treaties may also reduce or eliminate foreign taxes already paid on the estate.
This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.