{"id":23247,"date":"2026-09-18T23:12:44","date_gmt":"2026-09-18T22:12:44","guid":{"rendered":"https:\/\/yatirim.uk\/tr\/ingilterede-miras-vergisi-yabancilar\/"},"modified":"2026-09-20T10:47:01","modified_gmt":"2026-09-20T09:47:01","slug":"ingilterede-miras-vergisi-yabancilar","status":"publish","type":"page","link":"https:\/\/yatirim.uk\/en\/ingilterede-miras-vergisi-yabancilar\/","title":{"rendered":"How Does UK Inheritance Tax Work for Foreigners?"},"content":{"rendered":"
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How Does UK Inheritance Tax Work for Foreigners?<\/h1>\n

Your UK home is subject to UK Inheritance Tax wherever you live and whatever your nationality.<\/strong> The tax is 40% on the part of your UK assets above \u00a3325,000. For an investor who does not live in the UK, generally only UK assets count; your assets in Turkey or other countries do not. A mortgage on the home reduces its taxable value. There is no double taxation treaty on inheritance tax between Turkey and the UK.<\/p>\n\n

The basic rules<\/h2>\n
Topic<\/th>Rule<\/th><\/tr><\/thead>
Rate<\/strong><\/td>40% on the part above the tax-free amount<\/td><\/tr>
Tax-free amount (nil rate band)<\/strong><\/td>\u00a3325,000; this amount has been fixed for a long time and is frozen<\/td><\/tr>
Additional residence allowance (residence nil rate band)<\/strong><\/td>Up to \u00a3175,000; only if a home the person lived in passes to their children or grandchildren. It does not apply to an investment flat you never lived in<\/td><\/tr>
People not living in the UK<\/strong><\/td>Only UK assets are taxed<\/td><\/tr>
Long-term residents<\/strong><\/td>For those UK resident in at least 10 of the last 20 tax years, worldwide assets are taxed (since 6 April 2025)<\/td><\/tr>
Ownership through a company or trust<\/strong><\/td>UK residential property is taxed even if held through an overseas company or trust<\/td><\/tr>
Transfers between spouses<\/strong><\/td>Generally tax-free; where a long-term UK resident leaves assets to a spouse who is not a long-term resident, the exemption is capped at \u00a3325,000 (this can be changed by making an election)<\/td><\/tr>
Payment deadline<\/strong><\/td>6 months from the end of the month of death; tax on property can be paid in instalments over 10 years<\/td><\/tr><\/tbody><\/table><\/div>\n\n

Worked example<\/h2>\n

An investor living in Turkey, with no other UK assets, who owns a \u00a3500,000 flat in London:<\/p>\n

<\/th>No mortgage<\/th>\u00a3200,000 mortgage<\/th><\/tr><\/thead>
Value of the flat<\/td>\u00a3500,000<\/td>\u00a3500,000<\/td><\/tr>
Mortgage debt<\/td>0<\/td>\u00a3200,000<\/td><\/tr>
Taxable value<\/td>\u00a3500,000<\/td>\u00a3300,000<\/td><\/tr>
Tax-free amount<\/td>\u00a3325,000<\/td>\u00a3325,000<\/td><\/tr>
Inheritance tax (40%)<\/strong><\/td>\u00a370,000<\/strong><\/td>0<\/strong><\/td><\/tr><\/tbody><\/table><\/div>\n

The example assumes the full tax-free amount is available and no gifts were made in the seven years before death. Certain conditions apply for the debt to be deductible; work out your own position with a tax adviser.<\/p>\n\n

Legal ways to reduce the tax<\/h2>\n