Tax on Inheritance or Gift from the UK?
#1
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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
#2
Re: 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
* 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.
#3
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Re: Tax on Inheritance or Gift from the UK?
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
#4
Re: Tax on Inheritance or Gift from the UK?
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.
#5
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Re: Tax on Inheritance or Gift from the UK?
Thanks Rambi
#7
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.
#8
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Re: Tax on Inheritance or Gift from the UK?
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?