steveandaileen Posted July 6, 2015 Share Posted July 6, 2015 We have been PR in Western Australia for 3-1/2 years, will be applying for Citizenship in September, we came on a Contributory Parent Visa. my wife's father passed away last month, and once his property is sold she will be entitled to about 50,000 pounds, do we have to pay UK inheritance Tax, or/and Australian Tax, my wife works part-time, but not enough to pay tax. Any advice would be appreciated Link to comment Share on other sites More sharing options...
Parley Posted July 6, 2015 Share Posted July 6, 2015 Where did your wife's father die ? That is what counts. If he died in the UK then his estate will have to pay death duties. Your solicitor in the UK will apply for probate and advise how much you pay. It comes out of the estate and the remainder is then distributed. Link to comment Share on other sites More sharing options...
Bungo Posted July 6, 2015 Share Posted July 6, 2015 As above. Tax is not levied on the individual inheriting, it is levied on the estate before it is distributed. Link to comment Share on other sites More sharing options...
caramac Posted July 6, 2015 Share Posted July 6, 2015 It's usually the estate which pays the tax, but only if it's worth, as a whole, over £325,000(for a single person). There is usually no tax payable by the recipient, although there are some exceptions. this might help https://www.gov.uk/tax-property-money-shares-you-inherit Link to comment Share on other sites More sharing options...
Que Sera Sera Posted July 6, 2015 Share Posted July 6, 2015 As above. Tax is not levied on the individual inheriting, it is levied on the estate before it is distributed. You do have to declare it on your tax return though don't you? Link to comment Share on other sites More sharing options...
Bungo Posted July 6, 2015 Share Posted July 6, 2015 You do have to declare it on your tax return though don't you? Not 100pc, but dont think so, but there would need to be a final income tax return of the deceased. Link to comment Share on other sites More sharing options...
Parley Posted July 6, 2015 Share Posted July 6, 2015 You do have to declare it on your tax return though don't you? Don't see why. I certainly didn't. Link to comment Share on other sites More sharing options...
Que Sera Sera Posted July 6, 2015 Share Posted July 6, 2015 I got a really small inheritance from a distant relative last year. Less than $2000 after cheque fees etc, anyway when I did my tax return online it asks ( forget the exact words ) any other money from any foreign source. I don't pay tax as I don't earn enough but I mentioned it because of course it was? Link to comment Share on other sites More sharing options...
Bungo Posted July 6, 2015 Share Posted July 6, 2015 I got a really small inheritance from a distant relative last year. Less than $2000 after cheque fees etc, anyway when I did my tax return online it asks ( forget the exact words ) any other money from any foreign source. I don't pay tax as I don't earn enough but I mentioned it because of course it was? I think you didn't need to put it on there, any more than if say your husband had give you some money for shopping. In effect an inheritance is like a gift. And the tax would have been dealt with before you got it. Link to comment Share on other sites More sharing options...
Que Sera Sera Posted July 6, 2015 Share Posted July 6, 2015 I think you didn't need to put it on there, any more than if say your husband had give you some money for shopping. In effect an inheritance is like a gift. And the tax would have been dealt with before you got it. Ah ok. Just as well it wasn't millions then :laugh: Link to comment Share on other sites More sharing options...
Parley Posted July 6, 2015 Share Posted July 6, 2015 An inheritance is not income for tax purposes. Link to comment Share on other sites More sharing options...
Que Sera Sera Posted July 6, 2015 Share Posted July 6, 2015 An inheritance is not income for tax purposes. the wording is quite bullish, you must declare everything ! Glad I don't do the OH's his is a minefield . Link to comment Share on other sites More sharing options...
Bungo Posted July 6, 2015 Share Posted July 6, 2015 the wording is quite bullish, you must declare everything ! Glad I don't do the OH's his is a minefield . Must declare all "income", but this was not income. It was an inheritance, a gift would also not need to be declared as that is not income either. Still to a lay person, I get that it all seems like "income". Glad you didn't pay unnecessary tax though! Link to comment Share on other sites More sharing options...
Que Sera Sera Posted July 6, 2015 Share Posted July 6, 2015 Must declare all "income", but this was not income. It was an inheritance, a gift would also not need to be declared as that is not income either. Still to a lay person, I get that it all seems like "income". Glad you didn't pay unnecessary tax though! So am I! It was a lovely gift , a spinster Great Great Aunt that we knew nothing about. Quite sad really. Link to comment Share on other sites More sharing options...
steveandaileen Posted July 6, 2015 Author Share Posted July 6, 2015 We have been PR in Western Australia for 3-1/2 years, will be applying for Citizenship in September, we came on a Contributory Parent Visa.my wife's father passed away last month, and once his property is sold she will be entitled to about 50,000 pounds, do we have to pay UK inheritance Tax, or/and Australian Tax, my wife works part-time, but not enough to pay tax. Any advice would be appreciated Wife's father died in UK Link to comment Share on other sites More sharing options...
davlap Posted July 7, 2015 Share Posted July 7, 2015 It would be good to get clarity on what is income. For example, if you won the lottery tax free in the UK when you were visiting, I assume ato would want their share of it. Likewise premium bond winnings would need to be declared. Also, say you didn't inherit, but were given a wedge by relatives, how would that be seen? I need to know as when we win the million on premium bonds, do you need to escape the country to stop being taxed by ato at 47c (47%) for each $1 over $180,000. I've already got an emergency bag packed ready. Link to comment Share on other sites More sharing options...
Parley Posted July 7, 2015 Share Posted July 7, 2015 Lottery wins are tax free in Australia Link to comment Share on other sites More sharing options...
davlap Posted July 7, 2015 Share Posted July 7, 2015 Lottery wins are tax free in Australia Yes, if you win in Aus for sure. But what if you win in UK, or get money gifted. Is it like UK tax free ISA'a where you declare it and it is not tax free in Aus Ok, had a quick look at ato and it does look like a lump sum of the sort I mentioned is not income, as per inheritance, so I can unpack that bag! Link to comment Share on other sites More sharing options...
Gbye grey sky Posted July 7, 2015 Share Posted July 7, 2015 Yes, if you win in Aus for sure. But what if you win in UK, or get money gifted. Is it like UK tax free ISA'a where you declare it and it is not tax free in Aus Ok, had a quick look at ato and it does look like a lump sum of the sort I mentioned is not income, as per inheritance, so I can unpack that bag! Just to be clear ISA interest is 'income' but gifts or winnings are not. A 'gift' from a relative can only be 'income' if it was paid for services rendered. Gambling wins (such as lottery, premium bonds, pools, horse-race bets etc etc) are not deemed income for tax purposes. The tax authorities reason that most gamblers lose their stake so if they taxed winnings as income then they would need to allow the betting stake as a loss. Link to comment Share on other sites More sharing options...
davlap Posted July 7, 2015 Share Posted July 7, 2015 Thanks parleycross and Gbye grey sky I was aware that ISAs do attract tax in Aus, just had the rest of it wrong Link to comment Share on other sites More sharing options...
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