I am looking for advice (in plain English) about the best way to manage a potential inheritance from New Zealand (NZ). I am a New Zealander but have resided in the UK for over 30 years. What happens when or if I inherit money from NZ, which does not currently have any IHT? 

Arthur Weller replies:  

As a recipient, you have no UK tax to pay if or when you receive an inheritance from NZ. However, I advise you to keep good paperwork to prove or show that this is inheritance money, just in case HMRC questions you about a (large) amount of money coming into your account and wants to know if this money is income or a capital receipt from the sale of an asset. Of course, once the funds are received, they will be within your estate and hence liable to IHT from this point on.