Inheriting In The UK

Hello all,

I am a UK citizen currently residing in Switzerland on a B-permit.

If I were to inherit a property/assets situated in the UK upon the death of a family member then would the UK rate of inheritance tax come into play or would I be taxed via the Swiss system and tax rates?

Thank you.

The estate would be subject to death duties in the UK. Then the Swiss tax office would have a little nibble at wealth tax if you transfer it over here…

Welcome to the forum. I think this link would give you a bit more reading matter on the subject.

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Yes. First, UK IHT rules would apply to the estate.

Then, when the funds are transferred to you, then the Swiss rules would apply to the funds you receive from the estate.

My father passed away in Demember 2023, and I am likely to receive the benefits from the Will during Q3 or Q4 2024, which is being executed in Australia by a state trustee.

I will only know my exact entitlement in around 1-2 months time, and some will be subject to Australian Capital Gains Tax.

My question is: what are my obligations to inform the Swiss Tax office in advance? Do I have to give them a “heads up” now, when I know my gross entitlement (before AUS tax) or only once I receive the benefits? Naturally they will be included on my Swiss tax return once I have the assets in my name.

In the St Gallen tax return and I guess others there’s a box to fill if you are due to receive an inheritance which has not yet been distributed - you are supposed to enter the estimated value. So you should (have) includ(ed) this in your 2023 tax return. If you don’t know the amount and haven’t yet filed, you can delay filing the form until you do mentioning this as a ground.

The only impact should be on your wealth tax. There is no special notification needed other than the return.

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Indeed I have received a delay our tax return 2023 until end of September 2024. It is also my understanding that the only tax implication in Switzerland is regarding wealth…which is good, as the combination of Australian CGT penalties and the poor exchange rate are going to be significant as it is.