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Tax on Inheritance or Gift from the UK?

Tax on Inheritance or Gift from the UK?

Old Sep 8th 2011, 9:40 pm
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Default Tax on Inheritance or Gift from the UK?

Just a hypothetical but does anyone know if you receive a cash gift from a family member from the UK or an inheritance from their estate will you pay tax on it in Australia? I was thinking the amount might go towards your annual income but I'm not sure... Anyone know? Thanks
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Old Sep 8th 2011, 9:49 pm
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Default Re: Tax on Inheritance or Gift from the UK?

Originally Posted by LouiseR
Just a hypothetical but does anyone know if you receive a cash gift from a family member from the UK or an inheritance from their estate will you pay tax on it in Australia? I was thinking the amount might go towards your annual income but I'm not sure... Anyone know? Thanks
No gift tax or inheritance tax* in Aus.


* unless you're an adult inheriting someone's super in which case you pay 15% but that doesn't sound like it applies to this hypothetical.
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Old Sep 8th 2011, 9:57 pm
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Default Re: Tax on Inheritance or Gift from the UK?

Originally Posted by Rambi
No gift tax or inheritance tax* in Aus.


* unless you're an adult inheriting someone's super in which case you pay 15% but that doesn't sound like it applies to this hypothetical.
Thanks for the quick reply Rambi.

So for example someone in the UK could give me $100,000 and I would pay no tax on it? Not even income tax?

Last edited by LouiseR; Sep 8th 2011 at 9:58 pm. Reason: missed a word out
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Old Sep 8th 2011, 10:10 pm
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Default Re: Tax on Inheritance or Gift from the UK?

Originally Posted by LouiseR
Thanks for the quick reply Rambi.

So for example someone in the UK could give me $100,000 and I would pay no tax on it? Not even income tax?
Not in Aus.

However there are gift taxes in the UK (which apply to the giver). They can be circumvented but it is a little crazy. The main way of circumventing them is to give the money away 7 years before you die.
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Old Sep 8th 2011, 10:20 pm
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Default Re: Tax on Inheritance or Gift from the UK?

Originally Posted by Rambi
Not in Aus.

However there are gift taxes in the UK (which apply to the giver). They can be circumvented but it is a little crazy. The main way of circumventing them is to give the money away 7 years before you die.
That's fantastic If I only I knew someone with that much money! But it's handy to know for the future as I was worried about if we do get left something that we might have to pay so much tax it wouldn't be worth accepting it.

Thanks Rambi
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Old Sep 8th 2011, 10:52 pm
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Default Re: Tax on Inheritance or Gift from the UK?

Originally Posted by LouiseR
That's fantastic If I only I knew someone with that much money! But it's handy to know for the future as I was worried about if we do get left something that we might have to pay so much tax it wouldn't be worth accepting it.

Thanks Rambi
You're welcome.
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Old Sep 9th 2011, 12:21 am
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Default Re: Tax on Inheritance or Gift from the UK?

When my father died in the UK my brother settled the estate and paid all the necessary UK death duties etc: when my share arrived in Australia I had no further tax to pay.
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Old Sep 9th 2011, 3:37 am
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Default Re: Tax on Inheritance or Gift from the UK?

Originally Posted by KJCherokee
When my father died in the UK my brother settled the estate and paid all the necessary UK death duties etc: when my share arrived in Australia I had no further tax to pay.
Sorry for your loss KJC, can I ask what happened when the money arrived? Do you declare it to anyone or do they just transfer it straight into your bank account and you don't have to let the ATO/anyone know?
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