Receiving an overseas inheritance while living in the UK

Katerina Galkina · EN · 07/10/2026

Start with the law where the estate is administered

Living in the UK does not automatically determine how an overseas home, bank account or inheritance share is transferred. Establish where the estate must be administered, who handles it, any acceptance deadlines and whether a representative can act. Do not postpone contacting a local lawyer until the British tax questions are resolved.

Gather the death certificate, any will, evidence of relationship, asset details and valuations. Check requirements for originals, translations, apostilles or other authentication. A power of attorney made in the UK must meet the receiving authority's requirements; there is no universally acceptable wording for every country.

Separate inherited capital from income

GOV.UK explains that receiving an inheritance does not usually create an immediate tax charge for the beneficiary ↗. That does not mean an overseas inheritance is always entirely outside the UK tax system. Distinguish inherited asset values, income distributed during estate administration and income arising after assets are transferred.

Interest, dividends and rent may fall within the foreign-income tax rules ↗. A later sale of inherited assets needs a separate Capital Gains Tax assessment. Keep evidence of date-of-death values and foreign tax calculations even when the money remains abroad.

Assess Inheritance Tax using the deceased's circumstances

The beneficiary's address alone does not determine UK Inheritance Tax. Relevant factors include the assets, death date and the deceased's tax residence history. For deaths after 5 April 2025, rules based on long-term UK residence apply ↗; earlier deaths are assessed under the previous conditions.

If two countries impose tax, examine Inheritance Tax double-taxation relief ↗. This requires checking the particular tax, assets and applicable convention; a foreign tax receipt does not guarantee an automatic credit. A complicated estate calls for advice covering both jurisdictions.

Prepare the transfer to a UK bank

Tell the bank in advance about the amount, currency and basis of the payment. Prepare estate documents, the distribution account, any sale evidence and statements showing the full payment trail. Agree translation requirements and whether the proposed sending bank is acceptable.

Make a schedule separating inherited capital, estate-administration income, later income, taxes withheld and expenses. Do not describe the entire payment simply as “inheritance” if it includes different components. Compare exchange rates and fees, but first confirm that the estate representative is authorised to distribute funds through the proposed route. Retain the complete evidence after the transfer: it may be needed for a later home purchase, tax return or asset disposal.