Being told that you have inherited money overseas can quickly lead to a very practical question: how do you get it back to the UK?
Perhaps a parent retired to Spain and has left you a share of their estate. You may have inherited a property in France that you plan to sell, or received money from family in the US, Australia or elsewhere.
In each case, there can be several stages between being told what you have inherited and seeing the money safely arrive in your UK bank account.
There may be probate or its overseas equivalent to complete, local taxes to settle and documents to provide before the funds can be released. If the inheritance is in another currency, there is another consideration too: its value in pounds can change while you are waiting.
Here is how the process generally works, and what to think about before transferring an overseas inheritance to the UK.
Tax disclaimer: This article is for general information only and does not constitute tax, legal or financial advice. Tax treatment depends on your individual circumstances and may change over time. If you are receiving an overseas inheritance, you should seek guidance from a qualified tax adviser or legal professional who understands both UK rules and the rules in the country where the estate is being administered.
Can you bring an overseas inheritance into the UK?
Yes. If you inherit money overseas, you can generally transfer it to your UK bank account once the estate administration and any applicable legal or tax requirements have been dealt with.
There is no separate UK tax simply for converting inherited foreign currency and sending the resulting pounds to a UK bank account. However, taxation of an international estate can be complicated, particularly where the deceased, beneficiary and assets are connected to different countries.
HMRC says that Inheritance Tax can potentially apply to overseas assets depending on factors including the deceased’s UK residence history and the location of the assets. Since 6 April 2025, UK Inheritance Tax rules for internationally connected estates have moved from a domicile-based system towards one based on long-term UK residence.
So before moving a significant inheritance, establish what taxes have already been dealt with and whether you need specialist tax or legal guidance.
In brief
To bring an overseas inheritance back to the UK:
- Complete the relevant probate or estate administration.
- Confirm what taxes and costs need to be paid.
- Decide whether inherited assets such as property need to be sold.
- Gather evidence showing where the money came from.
- Establish when the funds will become available.
- Decide when and how to convert them into pounds.
- Transfer the money to your UK bank account and keep your records.
Do you pay UK tax on an overseas inheritance?
Usually, you do not personally receive an inheritance and immediately pay Income Tax or Capital Gains Tax simply because you have inherited it.
HMRC explains that Inheritance Tax is generally dealt with as part of the estate. However, tax can arise later. For example, you may have to pay Income Tax on rental income or dividends generated by inherited assets, or Capital Gains Tax if an inherited asset rises in value and you later sell it.
International inheritances can be more complicated because another country may also levy an inheritance, succession or estate tax.
If both the UK and another country tax the same inheritance, double taxation relief may sometimes be available. The UK has inheritance tax treaties with some countries and HMRC may also provide unilateral relief in certain circumstances.
| Question | What you may need to establish |
|---|---|
| Has tax already been paid overseas? | Check the rules applying to the estate in that country |
| Could UK Inheritance Tax apply? | This can depend on the deceased’s circumstances and the assets involved |
| Have you inherited property or investments? | Selling them later could create a taxable gain |
| Has the same inheritance been taxed twice? | Check whether double taxation relief is available |
For a substantial or complex estate, professional cross-border tax guidance can be worthwhile before transferring the proceeds.
What documents do you need to transfer inheritance money to the UK?
Do not be surprised if you are asked where the money came from.
Banks and regulated currency providers have anti-money laundering (AML) responsibilities and may need to establish the source of funds for a large transaction. HMRC guidance specifically refers to checking source of funds as part of ongoing transaction monitoring.
For an inheritance, you may be asked for documents such as:
- a grant of probate or the overseas equivalent
- the will
- a letter or statement from the executor
- estate accounts
- confirmation from the solicitor or notary handling the estate
- bank statements showing receipt of the inheritance
- a completion statement if inherited property has been sold
- identification and proof of address
The exact documents required will depend on the transaction and circumstances.
It is often worth gathering these before you arrange the currency transfer. If €300,000 suddenly arrives in an overseas account and you immediately attempt to move it elsewhere, being able to show its origin can prevent unnecessary delays.
What if you inherit a property overseas?
Sometimes the inheritance is not cash at all.
Imagine you and your sibling inherit your parent’s apartment in Spain. Neither of you intends to keep it, so you agree to sell the property and divide the proceeds.
The process might involve completing the Spanish inheritance formalities, registering ownership, settling applicable taxes and costs, selling the property and receiving the proceeds into an appropriate account.
There can also be tax consequences when inherited overseas property is sold.
HMRC says UK residents may have to pay UK Capital Gains Tax when selling overseas property. Tax may also be due in the country where the property is located, although relief may sometimes be available where the same gain is taxed twice.
Once the sale and tax position have been dealt with, your share of the proceeds may then need converting into pounds.
That is where exchange rates become particularly important.
How exchange rates can change the value of your inheritance
An inheritance denominated in euros, US dollars or another currency does not have a fixed value in pounds.
Suppose you are due to receive €300,000 (about £261,000 at an illustrative exchange rate of £1 = €1.15).
If you converted it at that rate, you would receive roughly £261,000 before any applicable currency margin.
But imagine probate takes several months and the exchange rate has moved to £1 = €1.20 by the time the money becomes available.
Your €300,000 would then be worth £250,000.
That is a difference of around £11,000, even though the value of the inheritance itself has not changed.
Currency markets can move in either direction, so the reverse could also happen. The important point is that when a large inheritance is held in another currency, movements in the pound can materially affect what you eventually receive.
The problem with waiting for probate
One unusual feature of an inheritance is that you can know a substantial amount of foreign currency is coming long before you have access to it.
You might be told in January that your share of an estate should be around €400,000, for example, but still be waiting for probate, tax clearance or the sale of a property months later.
During that period, the sterling value of the inheritance continues to move with the exchange rate.
This is why it can make sense to start thinking about currency before the executor tells you the money is ready to send.
You do not have to predict what sterling will do next. Instead, think about your own priorities.
If the amount you eventually receive in pounds will fund a house purchase, repay a mortgage or form part of your retirement savings, certainty may matter more to you than trying to benefit from a favourable change in the market.
Can you fix the exchange rate before receiving your inheritance?
In some circumstances, a forward contract can help you manage this uncertainty.
A forward contract allows you to agree an exchange rate for a currency conversion that will take place at an agreed future date. This can provide certainty over the sterling value of a future transfer rather than leaving the entire amount exposed to subsequent currency movements. Smart Currency Exchange offers forward contracts as part of its currency risk management services.
For example, if you know you are due to receive a large euro inheritance in the coming months, you could speak to a currency specialist about whether fixing an exchange rate is appropriate for the transaction and expected timescale.
There is a trade-off.
If you fix a rate and the market subsequently moves in your favour, you will not benefit from that improvement on the amount covered by the contract. The benefit is certainty: you know what sterling value you have secured rather than leaving it dependent on the exchange rate on an unknown future day.
Forward contracts are therefore better viewed as a way to manage currency risk, rather than as a way of predicting or beating the market.
Should you transfer an inheritance all at once?
There is no single approach that works for every overseas inheritance.
If all the funds become available at the same time and you need them in the UK, converting the full amount may be straightforward.
Other estates distribute funds in stages. You may receive an initial payment before the executor releases the final balance, or sell inherited investments and property at different times.
Some people may also prefer to convert their inheritance in stages.
What matters is understanding the consequences. Leaving part of the inheritance in another currency means its sterling value remains exposed to exchange-rate movements.
Before deciding, ask yourself three questions.
How much are you expecting?
Establish the approximate amount and currency. Exchange-rate movements that seem small can make a substantial difference when you are converting hundreds of thousands of pounds.
When will you receive it?
Ask the executor, lawyer or notary for a realistic indication of when funds may become available.
A precise date may not be possible, but knowing whether you are looking at weeks, months or longer makes currency planning easier.
What will you use the money for?
Someone who intends to use the inheritance immediately may have different priorities from someone who has no immediate requirement for the funds.
For example, if you need a known sterling amount for a UK property purchase, protecting that target may be more important than leaving the entire inheritance exposed to market movements.
What happens if your inheritance is delayed?
Delays are common in estate administration and can be particularly frustrating when different countries are involved.
There may be documents to obtain, properties to value or sell, beneficiaries to locate and local tax authorities to deal with.
From a currency perspective, the important thing is not to assume that you must ignore the exchange rate until everything is complete.
If you have a reasonable idea of the amount, currency and likely timing, you can start discussing your options earlier.
That does not mean you have to transfer or fix anything immediately. It means you can understand what would happen to the sterling value of the inheritance if the exchange rate moved significantly before the estate was distributed.
How to transfer a large overseas inheritance to the UK
Once the funds have been released, the practical transfer can be relatively straightforward.
With Smart Currency Exchange, you can speak to a dedicated account manager about the amount, currencies involved and your timescale. Smart specialises in bank-to-bank international payments and does not provide cash or travel money services. It also does not charge transfer fees, although a margin is applied to the exchange rate.
For a large inheritance, having a named person to speak to can also help when lawyers, executors and overseas banks are involved in the transaction.
Smart Currency Exchange is authorised by the Financial Conduct Authority for the provision of payment services, reference number 504509. Client funds are held in segregated client accounts in accordance with the applicable safeguarding arrangements.
Overseas inheritance transfer checklist
Before moving an overseas inheritance back to Britain, check that you have:
- confirmed probate or the relevant overseas estate process
- established what UK and overseas taxes may apply
- obtained professional tax or legal guidance where necessary
- decided whether inherited property or other assets will be sold
- gathered documents showing the source of the money
- confirmed approximately how much you will receive
- established the currency and likely payment date
- considered how exchange-rate movements could affect the sterling value
- discussed whether a spot transfer, forward contract or staged approach fits your needs
- checked your receiving bank details carefully
- retained records of the inheritance and subsequent transfers
Plan the currency transfer before the money arrives
When you receive a large inheritance, exchange rates probably will not be the first thing on your mind.
But if that inheritance is overseas, currency movements can make a significant difference between the amount you expect to receive and the pounds that eventually reach your account.
The useful starting point is simple: find out how much you expect to receive, when you are likely to receive it and what you intend to do with the money.
Once you know those three things, you can make an informed decision about the currency rather than leaving a major transfer to whichever exchange rate happens to be available when probate finally completes.
Speak to Smart Currency Exchange about an overseas inheritance
If you are expecting an inheritance in euros, US dollars, Australian dollars or another currency, speak to a Smart Currency specialist about the transfer before the funds are released.
Your dedicated account manager can explain the currency options available, discuss how exchange-rate movements could affect your inheritance and help you plan the eventual bank-to-bank transfer.
Get a free currency quote from Smart Currency Exchange.
Frequently asked questions
Do I have to declare an overseas inheritance to HMRC?
Simply receiving inherited money does not necessarily mean that you personally owe tax, as Inheritance Tax is generally dealt with as part of the estate. However, internationally connected estates can have more complicated UK reporting and tax obligations, particularly where the deceased had UK connections or held assets in several countries. You may also become liable for Income Tax or Capital Gains Tax on income or gains arising from assets after you inherit them. For a substantial overseas inheritance, seek appropriate cross-border tax guidance.
How much inheritance money can I transfer to the UK?
There is no general fixed maximum that applies simply because money has been inherited. However, a large international transfer is likely to be subject to identity, anti-money laundering and source-of-funds checks. Be prepared to provide documentation showing where the inheritance came from.
Do I pay tax when transferring inherited money from abroad to the UK?
Moving inherited cash into your UK bank account does not itself generally create a new tax charge simply because you have transferred the money. However, tax may already have arisen within the estate and separate UK or overseas taxes can apply to inherited assets, income or later gains. International inheritance tax rules depend heavily on individual circumstances, so take professional tax guidance where necessary.
