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Goz(Newbie)Newbie
9 Feb 2025

Foreign inheritance, do I need to pay tax?


Just looking for some information regarding foreign inheritance.


I am from the UK but a permanent resident in Australia. In 2022 my father passed away and I was the sole beneficiary to his estate & assets etc. 


Unfortunately due to some slow proceedings with the probate & executor my father’s home only sold in January this year. The total income of my father’s estate was about £150,000 including the sale of the home, which is under the UK tax threshold.


Do I need to pay any tax in Australia or any capital gains tax from the sale of the house? The house has been unoccupied since 2022 & I did need to renovate the kitchen and bathroom etc.


I have looked on the ATO website but I can only find info regarding inherited homes in Australia etc.


Any info appreciated! 

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1 replies
221 views
1 replies

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Most helpful reply

Irisheyes47(Champion)Champion
12 Feb 2025

You are the beneficiary of the foreign trust estate so the rules would need to be considered under s 99B. See the attached ATO link.

www.ato.gov.au/businesses-and-organisations/trusts/in-detail/distributions/receiving-payments-or-assets-from-foreign-trusts


As the distribution is more than 24 months from the date of death, the 'safe harbour' rules in PCG 2024/3 would not apply. I recommend that you obtain advice from a Registered Tax Agent specialising in Australia/UK tax.



All replies

Most helpful reply

Irisheyes47(Champion)Champion
12 Feb 2025

You are the beneficiary of the foreign trust estate so the rules would need to be considered under s 99B. See the attached ATO link.

www.ato.gov.au/businesses-and-organisations/trusts/in-detail/distributions/receiving-payments-or-assets-from-foreign-trusts


As the distribution is more than 24 months from the date of death, the 'safe harbour' rules in PCG 2024/3 would not apply. I recommend that you obtain advice from a Registered Tax Agent specialising in Australia/UK tax.



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