Bringing inheritance money into the UK: What you need to know in 2025

If you have inherited money from someone based overseas, you’ll need to navigate the process of managing taxes both overseas and in the UK, and repatriating your money to the UK. The tax implications of receiving a foreign inheritance can vary pretty widely depending on the country the deceased person lived in and the value of the payment.

This guide covers some important things to think about, and also touches on some low cost providers such as Wise and OFX which can be a good choice for transferring inheritance funds from overseas to the UK.

What happens if you inherit money from another country?

If a friend or loved one has died overseas you may need to help with executing the will and ensuring that any inheritance can be transferred to the intended recipients. When someone dies, their estate - which can include their money, property and other goods - will be managed in accordance with the law in the country they died in. There may be taxes - such as inheritance tax - to pay before any inheritance can be distributed.

If you’ve been named as the executor of a will, you’ll likely be responsible for some or all of the following steps:

• Making sure all beneficiaries of the will are notified

• Valuing and managing the estate

• Obtaining the authority to administer the estate

• Ensuring that all tax obligations are properly addressed

• Resolving any outstanding debts

• Overseeing the division of the estate

In this guide, we’ll cover how you can receive inheritance money from abroad safely with low costs, and the tax implications you’ll need to consider.

How to bring inheritance money to the UK from abroad

If you’ve inherited money from overseas, you can bring the funds to the UK in the following ways:

• Carry cash or a cheque to deposit to your UK bank account

• Make a bank transfer from a bank in the country the individual died in, to your UK bank

• Use a money transfer provider to send money from the originating country to a UK bank

• Open a multi-currency account to receive the funds in the foreign currency without converting back to GBP

  Each of these options has its own pros and cons. Carrying cash or a high value cheque across national borders can be simple to arrange, but it’s risky, and will require you to report the funds to customs officials upon entry to the UK. On the other hand, sending money through your bank can come with pretty high fees, but it’s a convenient way to repatriate your funds to your UK bank account.

For many people, using a specialist money transfer service - like Wise, OFX or XE Money Transfer - can be a good solution, offering a convenient and cheap way to send and receive a high value transfer. We’ll look at these ways to transfer inheritance money from overseas to the UK in more detail next.

Best ways to transfer your inheritance money from overseas to the UK.

Managing the transfer of your inheritance payment electronically is secure and convenient. You can use a bank to make a transfer to the UK, or compare some specialist money transfer services to see if you can get a cheaper transfer with a better exchange rate. Here are a few great money transfer providers to consider:

*Details correct at time of research - 26th February 2025

Wise pricing/fees: Please see Terms of Use for your region or visit Wise Fees & Pricing for the most up to date pricing and fee information

*The speed of transaction claims depends on individual circumstances and may not be available for all transactions

You can also open a Wise account to send and receive international payments in a broad range of currencies. Accounts come with local and SWIFT details so you can be paid by others in global currencies and without needing to convert back to GBP if you don’t want to.

How to receive inheritance money from abroad with Wise

Receive payments through Wise either to your bank account in the account’s designated currency, or into a Wise multi-currency account in 20+ currencies using local and SWIFT account details.

OFX

OFX offers international transfers in 50+ currencies, which often have no upfront transfer fee if you’re sending  large payments. The fee that’s applied may vary depending on where the payment originates, and you can arrange your payment online, in the OFX app, or on the phone with a broker service available 24/7. There’s no limit to the amount you can send with OFX. OFX exchange rates are likely to include a small fee.

If you’re a business customer you can also open a Global Currency Account which lets you receive payments from others in a selection of foreign currencies conveniently and with no OFX fee.

How to receive inheritance money from abroad with OFX

Receive payments through OFX to your bank account in the account’s designated currency. If you’re receiving money for your business you can also receive payments to a Global Currency Account in 7 currencies.

XE Money Transfer

Xe Money Transfer supports payments in many countries and currencies, with variable fees and exchange rates depending on where you’re sending to. The Xe limits are set according to the country that the payment originates from, but it is generally fairly high. For example, from the US you can send up to 535,000 USD and from Europe you can send 400,000 EUR.

You can arrange your payments online or in the Xe app, for deposit to bank accounts and mobile money accounts.

How to receive inheritance money from abroad with XE Money Transfer

Receive payments through XE Money Transfer to your bank account in the account’s designated currency.

Inheritance tax in the UK

If the person you receive an inheritance from is not a UK citizen or resident, and the assets in question are not in the UK, HMRC is not likely to impose inheritance tax on the inherited amount. However, other taxes may still apply - including taxes in the country the deceased individual lived in. You’ll need to get professional support with your tax filing to make sure you’re complying with the laws which apply in your specific case.

This guide is for information only - seek professional advice if you need support about taxes in the UK or abroad.

How much can you inherit without paying taxes in the UK?

Inheritance tax is calculated based on the value of an inheritance, usually on the day the individual died. Inheritance tax is payable if you inherit UK funds or assets in excess of 325,000 GBP. You may still need to report an inheritance to HMRC even if it is under this amount, or if it has been sourced from non-UK assets.

What are the UK tax implications on an inheritance received from overseas?

You’ll need to get professional advice from a tax accountant to check the implications of receiving an inheritance. The value of the inheritance, where it has come from and where you’re a resident can all make a difference to where and whether you need to pay tax.

How to avoid double taxation when receiving inheritance

The UK has inheritance tax treaties with many countries which help to avoid individuals paying additional taxes on inheritance. You’ll need to check the details based on the country the individual was resident in at the point of their death to see if a tax treaty applies in your specific case.

What are the rules for receiving inheritance from abroad?

The way receiving an inheritance works can depend on the country the heir is resident in for tax purposes, as well as the country the individual died in. Each country has its own inheritance regulations, so legal processes and taxes may be different.

To receive inheritance from abroad, the heir will need to clarify the legislation to be applied based on the countries involved. They’ll then be able to pay any taxes owed and the remaining assets of the estate can be transferred to the heir.

Will I be taxed here in the UK if I receive money from abroad for inheritance?

What taxes apply in the UK for foreign inheritances can vary depending on the country the individual died in, the value of the inheritance, and your own tax residence. If the funds have not originated from UK assets, HMRC is not likely to impose tax on the inheritance. However, it’s very important to check the rules in your specific situation to comply with all relevant legislation.

Do I need to inform HMRCif I inherit money from abroad?

You may need to report receiving an inheritance to HMRC, even if the amount you received does not exceed the tax thresholds, or if it comes from overseas.

Because the rules can vary based on several factors, you’ll need to get professional advice to understand the application of the law in your specific case.

How to deposit a large cash inheritance?

If you have received an inheritance in cash you may be considering bringing it to the UK in your luggage, or shipping it using a courier or other method. It’s important to note that bringing over 10,000 GBP into the UK requires you to report to border officers on arrival in the country. This rule applies if you’re carrying cash, or other cash-like methods like cheques or travelers cheques.

Selling inherited foreign property

If you have inherited a property overseas and need to sell it, you can do so subject to tax rules in the country the property is located in. You may need to pay capital gains tax, for example, which could be owed in the country the property is in, as well as in the UK. Once you have navigated the tax implications of selling your inherited property you can repatriate the funds. Check out the following money transfer services as good ways to move money back to the UK from overseas:

• Wise - send high value payments with discounts on fees if you transfer 20,000 GBP or more in a month

• OFX - no limits on the value of transfers, often with no fee for high value payments

• XE Money Transfer - send payments digitally, with variable limits and fees based on the country you send from

What is the tax for selling inherited property overseas?

You’ll need to take professional tax advice to understand how taxes apply to your property sale, both in the country the property is located in, and in the UK. Capital Gains Tax and inheritance taxes may apply, for example, depending on factors like whether or not the property is your own primary residence.

Conclusion: Best ways to bring inheritance from overseas

If you’ve inherited money from overseas you’ll need to navigate the practical, legal and tax implications both in the UK and in the country the deceased individual lived in. Tax rules - including thresholds and rates for Capital Gains Tax and Inheritance Taxes  - can vary widely from one country to another so you’ll need to take professional advice to make sure you comply with all relevant laws.

• Capital Gains Tax and inheritance taxes may apply on an inheritance, either n the country the individual died in, or in the UK

• Bring the funds from your inheritance to the UK as cash, a cheque or an electronic transfer

• Electronic transfers are the most secure and convenient option and can be processed in GBP and other major currencies

• Check out providers like Wise and OFX for low cost international transfers to the UK, or consider a multi-currency account from a provider like Wise if you want to receive your money in a foreign currency

FAQs

Is inheritance from abroad taxable in the UK?

If you have inherited money from overseas there may be tax requirements in the country the deceased individual lived in, and in the UK. The situation can vary widely depending on factors like the value of the inheritance, the country involved and the relationship between the deceased individual and the heir. Get professional advice to help you navigate the rules properly.

Do I need to pay taxes on inheritance from abroad?

You may need to report or pay tax on your inheritance in the country the deceased individual lived in, and/or in the UK. This will depend on the nature of the inheritance and where you live, among other factors.

How long does it take for inheritance money to come through from overseas?

If you have inherited funds from overseas the amount of time taken to execute the deceased individual’s will can impact how quickly you receive your funds. Take local advice in the country the deceased individual lived in to understand how the process works there.