You do not usually owe any tax on an inheritance at the time you inherit it.
The personal representative (an executor or administrator) for the estate usually pays any Inheritance Tax due before giving you the inheritance.
HM Revenue and Customs (HMRC) will contact you if you have to pay any Inheritance Tax yourself. This may happen if:
- the person who died gave you a gift in the 7 years before they died
- your inheritance is put into a trust and the trust does not or cannot pay
- the personal representative could not or did not pay before you got your inheritance
After you inherit you may have to pay:
- Income Tax on any profit you earn from an inheritance (for example, dividends on shares or rental income from a property)
- Capital Gains Tax when you sell anything you inherited