There are a few things to consider when faced with the prospect of transferring inheritance money from overseas to the UK.

Firstly, you need to be aware of the possible tax implications involved when receiving an inheritance from abroad. Secondly, you need to find the best way to transfer the money to your UK bank account without incurring substantial international transfer fees.

These factors inform the steps to follow when looking at how to transfer inheritance money from another country to the UK.

 

Transferring inheritance money: Step-by-step

Follow these basic steps when receiving inheritance money from overseas in the UK.

 

Find out whether you need to pay tax

Your first step is to find out whether you need to pay inheritance tax.

If the deceased person is judged to have been domiciled abroad, you will be liable to pay tax on inheritance money and assets, under the existing double taxation conventions, if the country they lived in charges inheritance tax on that property. You may also be liable to pay taxes in your home country on specific asset types. The UK currently has double taxation conventions in place with the Republic of Ireland, the Netherlands, South Africa, and the USA.

If the UK and the country in which your deceased relative lived charge inheritance tax, you can use one of those double tax conventions to either avoid or reclaim this tax. If your relative lived in a country other than one of those mentioned above, you might be able to apply for relief under Unilateral Relief provisions. Use our tax guide to learn more about the taxes levied on money received from overseas and the additional costs you may need to pay when transferring inheritance money to the UK. Alternatively, speak to a tax specialist.

 

Find a provider to transfer your inheritance money

The next step is to find a provider to transfer your inheritance money. There are a few things to consider when deciding which provider to use, as you’ll want one that can send your money internationally at an exchange rate similar to what you would find on Google (the mid-market rate) and at a fair fee. These considerations include:

• Exchange rate: Most banks and foreign exchange service providers have what’s known as the hidden cost, which is a percentage-based markup as high as 5-6% on the mid-market exchange rate for international transfers. If you are not cautious when making your decision, you could lose a large sum of money to this hidden cost. Moneycorp offers competitive exchange rates.
• Transfer fees: Most banks and money transfer services charge a fee for transferring money internationally. Depending on the amount of money you want to send, the fee could be fixed, or it could be percentage-based. Banks charge particularly high fees for international transfers, and these fees apply to the sender and the recipient. For this reason, a money transfer provider such as Moneycorp is the a better option.
• Maximum sending limits: Most banks and many foreign exchange providers have a maximum sending limit within specified time periods, such as 24 hours or a week. Ensure you choose a provider that can send the full amount of your inheritance money in one go, and that you have all the necessary documentation to prevent frustrating delays.

 

Consider using a forward contract

There’s no easy answer to the question, “How long does it take to get inheritance money from abroad?” The answer depends on various factors, many of which are beyond your control, such as delays in finalising the deceased’s estate. Consider using a forward contract to protect your inheritance money from unfavourable changes in the exchange rate. With a Moneycorp forward contract, you can lock in the prevailing exchange rate for up to two years, giving you time to transfer your inherited funds and convert them into pounds sterling.

 

Choose Moneycorp to transfer your inheritance money

Moneycorp offers competitive exchange rates, low fees, easy-to-use transfer services, forward contracts, and other products you can use to protect your money. Choose us when you are faced with the prospect of receiving inheritance money from overseas in the UK.

 

Sign up for a personal account with Moneycorp

With competitive rates, straightforward services, and more than 120 currencies, Moneycorp is a wise choice when it comes to foreign exchange. Sign up for a personal account with Moneycorp, take advantage of our low fees, competitive rates, and FX products, and send money with ease.