Probate · International Estates

Foreign assets and UK probate: what executors must do

Q: Do I pay inheritance tax in both countries?

Possibly — but never twice in full on the same asset. UK inheritance tax applies to the worldwide estate of a long-term UK resident, and the country where the asset sits may also charge death tax. The UK gives credit for foreign tax paid, either under a double taxation treaty or under unilateral relief (s.159 IHTA 1984), claimed through the IHT400 return.

Q: What if the will doesn't mention the foreign property?

A UK will can cover worldwide assets, but the country where the property sits decides whether to honour it. Civil-law countries such as France and Spain apply forced heirship rules that can override a UK will. Take local legal advice before assuming the UK will controls the foreign property.

Q: What is resealing a grant of probate?

Resealing is a Commonwealth court stamping the UK grant with its own seal under the Colonial Probates Act 1892, giving it the same force as a locally issued grant. It is typically weeks rather than months, and far cheaper than a fresh local probate application.

Q: Do I need a foreign lawyer, and who pays for one?

For property in civil-law countries such as France, Spain or Italy, a local notary or lawyer is effectively unavoidable. Foreign legal fees are an administration expense of the estate, paid from estate funds before beneficiaries receive anything.

UK inheritance tax reaches the whole worldwide estate — but a UK grant of probate stops at the border. If the person who died lived in the UK, HMRC taxes their villa in Spain and their account in Dublin exactly like their house in Leeds.

Yet the grant that unlocks a Barclays account carries no authority abroad — every foreign asset needs its own release route.

This page covers: what counts as a foreign asset · how HMRC taxes it · resealing vs local probate · double tax relief · the executor's step-by-step sequence.

§1

What counts as a foreign asset — and how HMRC taxes it

Every foreign holding must be declared to HMRC, wherever it sits. Foreign assets go on schedule IHT417, filed with the main IHT400 return. Inheritance tax at 40% applies above the £325,000 nil-rate band to the worldwide estate — the location of the asset changes how you release it, not whether it is taxed. Values are converted to sterling at the exchange rate on the date of death.

Foreign asset type — what the executor must do

Overseas propertyLocal law

Declared on IHT417 — transferred or sold under local succession lawA holiday home in Spain or France is part of the UK-taxable estate, but the local land system controls the transfer. Civil-law countries route property through a notary, and forced heirship rules can override the UK will. Get a local valuation in local currency at the date of death.

Foreign bank accountsBank rules

Each bank sets its own release requirementsSome foreign banks release modest balances against a certified death certificate and UK grant; others insist on local probate or a resealed grant. Ask the bank's bereavement team for its written requirements before starting any local process — you may not need one.

Foreign shares & investmentsRegistrar

Transferred via the local registrar or broker — often needs a resealed or local grantShares listed abroad follow the rules of the country of registration. US holdings commonly require federal transfer paperwork even for modest values; Commonwealth registrars usually accept a resealed UK grant. Brokers can often sell and remit rather than transfer, which is simpler.

TimesharesContract

Check the contract — many pass by the scheme's own rules, some are a liabilityTimeshares are contract rights, not always property. Some schemes transfer on death under their own rules; others carry ongoing maintenance fees the estate must keep paying until exit. Value honestly on IHT417 — some timeshares are worth nothing and cost money to leave.

Foreign pensions & life policiesScheme rules

Usually paid under the scheme's own beneficiary rules — may sit outside the estateLike UK pensions, many foreign schemes pay nominated beneficiaries directly and fall outside probate. But the tax treatment differs by country and treaty — declare the position to HMRC and keep the scheme's written confirmation of who was paid and under what rule.

§2

Getting the assets released: reseal or local probate

There are two routes to authority abroad — and the country decides which one applies. The UK grant itself is never enough on its own. The question is whether the foreign jurisdiction will recognise it cheaply, or make you start again under local law.

Resealing — the Commonwealth shortcut

Australia, New Zealand, most Canadian provinces, Singapore, Hong Kong and other Commonwealth jurisdictions can reseal the UK grant under the Colonial Probates Act 1892 — the local court stamps it with its own seal and it works like a local grant. Weeks rather than months, and a fraction of the cost of a fresh application.

Local probate — everywhere else

France, Spain, Italy, Portugal, the USA and most non-Commonwealth countries require a separate local succession process under their own law — usually through a notary or local attorney. Forced heirship can reserve fixed shares for children regardless of the UK will. Budget for local fees as an estate expense.

The liability trap. Never distribute the UK estate before the foreign tax position is settled. If foreign death tax, notarial fees or a forced-heirship claim lands after you have paid the beneficiaries, the executor is personally liable for the shortfall.

§3

Paying tax twice — and how you don't

Two countries can both tax the same asset — but the UK gives credit for the foreign tax paid. The credit never exceeds the UK tax on that asset, so you pay the higher of the two charges overall — not both in full. Both reliefs are claimed through the IHT400 return with evidence of the foreign tax actually paid.

Treaty relief

The UK holds estate-tax treaties with countries including the USA, France, Italy, Ireland, the Netherlands, Sweden and Switzerland. The treaty allocates primary taxing rights — typically to the country where immovable property sits — and the other country credits the tax. Where a treaty applies, it takes precedence over unilateral relief.

Unilateral relief

Where no treaty exists, s.159 IHTA 1984 gives credit anyway: HMRC deducts the foreign death tax paid on an asset from the UK IHT charged on the same asset. Keep the foreign tax receipts — the credit is capped at the UK tax attributable to that asset, so it can reduce the UK bill to nil on that asset but never below.

§4

The executor's sequence

Foreign assets slot into the ordinary probate timeline — but they start earlier and finish later. The IHT return cannot be filed until every foreign holding is valued, and the estate cannot close until every foreign release route has run its course. Start the foreign strand first, not last.

Step 1

Inventory every foreign holding

Search statements, correspondence, and the will for property, accounts, shares, timeshares, pensions and policies abroad. Ask family directly — foreign holdings are the assets most often missed, and an executor who distributes and then discovers one reopens the whole estate.

Step 2

Value at date of death, in local currency

Get a local valuation for property and closing balances for accounts, then convert to sterling at the date-of-death exchange rate from a verifiable published source. Keep the rate source with the estate papers — HMRC can ask for it.

Step 3

File IHT417 with the estate return

Declare every foreign asset and foreign debt on IHT417, filed alongside IHT400. Claim treaty or unilateral relief for any foreign death tax paid, with receipts. IHT is due 6 months after the end of the month of death — foreign delays do not extend the UK deadline.

Step 4

Run the release route per country

Commonwealth: apply to reseal the UK grant. Civil-law countries: instruct a local notary or lawyer. Banks: ask the bereavement team's written requirements first. Only when every route has completed — and foreign tax is settled — is it safe to distribute.

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Executor's First Hour · £179

The complete executor toolkit — including the international asset checklist

Includes the full asset-tracing checklist, the letter to send each institution, the IHT return sequence, and a timed action plan from day one through month twelve — with the foreign strand started on day one, where it belongs.

See what's included→

If this estate needs more than a guide

Where the boundary is reached, Valoren refers.

For the foreign leg, this page has already told you the truth: a local notary or lawyer is often unavoidable, and their fee is the estate's to pay. The UK side — the worldwide return, the treaty relief, the sequencing — is where you have two routes, and we are straightforward about which one is ours.

Signum · Valoren's own specialist desk

Have Signum carry it

Signum is part of Valoren — our own service, and we say so plainly. Signum runs the UK side of a cross-border estate — IHT400 with IHT417, double-tax relief, the resealing-or-local-probate fork — handled by in-house regulated specialists and coordinated through named regulated professionals. It starts with a free intake, and if we are not the right fit for your estate, we will tell you so and point you at the directories below.

valoren.uk/services →↗

Prefer an independent adviser?

The Law Society · Public directory

Find a Solicitor

The Law Society of England & Wales — regulated solicitors. Searchable by postcode and area of practice. Best fit for full-service estate administration where IHT400 submission, cross-border assets, or contested points are involved.

solicitors.lawsociety.org.uk →↗

STEP · Public directory

Find a Trust and Estate Practitioner

Society of Trust and Estate Practitioners — the professional body for trust and estate work in the UK. Members hold the TEP credential after rigorous examination. Best fit when trusts, cross-border estates, or complex succession structures are involved.

step.org →↗

CIOT · Public directory

Find a Chartered Tax Adviser

Chartered Institute of Taxation — the leading professional body for UK tax. Members hold the CTA credential after the most demanding tax qualification in the UK. Best fit when APR/BPR, business succession, lifetime gift planning, or HMRC dispute resolution are in play.

tax.org.uk →↗

Signum is Valoren's own desk — instructing it means instructing us, disclosed plainly. None of the three directories pays Valoren a referral fee; they are listed so the independent route is always one click away.

FAQ

Common questions

01Do I pay inheritance tax in both countries?›

Possibly — but never twice in full on the same asset. If the person who died was long-term UK resident, UK inheritance tax applies to the worldwide estate, and the country where the asset sits may also charge its own death tax.

The UK then gives credit for the foreign tax paid — either under a double taxation treaty (the UK has estate-tax treaties with countries including the USA, France, Italy, and Ireland) or under unilateral relief (s.159 IHTA 1984) where no treaty exists. You claim the credit through the IHT400 return.

02Does a UK grant of probate work abroad?›

No — a UK grant carries no automatic authority outside England and Wales. A foreign bank or land registry will not release assets on sight of it.

Commonwealth jurisdictions (Australia, New Zealand, most Canadian provinces, Singapore and others) can reseal the UK grant under the Colonial Probates Act 1892, which is faster and cheaper than starting again. Most other countries — France, Spain, Italy, the USA — require a separate local probate or succession process under their own law.

03What if the will doesn't mention the foreign property?›

A UK will can cover worldwide assets, but the country where the property sits decides whether to honour it. Civil-law countries such as France and Spain apply forced heirship rules that can override a UK will and reserve fixed shares for children.

Some people hold a separate local will for each country — if one exists, the two wills must not accidentally revoke each other. Take local legal advice before assuming the UK will controls the foreign property.

04What is resealing a grant of probate?›

Resealing is a Commonwealth court stamping the UK grant with its own seal, giving it the same force as a locally issued grant — the executor can then collect assets in that country without a full local probate application. It exists under the Colonial Probates Act 1892 and applies in both directions: foreign Commonwealth grants can also be resealed in England and Wales to collect UK assets.

Resealing is typically weeks rather than months, and far cheaper than a fresh application.

05What exchange rate does HMRC use for foreign assets?›

Foreign assets are valued in the local currency and converted to sterling at the exchange rate on the date of death. Use a verifiable published rate and keep the source with the estate papers.

The same date-of-death principle applies to foreign debts, which are deducted from the estate value on IHT417. Movements in the exchange rate after death do not change the IHT position — though they will change what the estate actually receives when funds are remitted.

06Do I need a foreign lawyer, and who pays for one?›

For property in a civil-law country — France, Spain, Italy, Portugal — a local notary or lawyer is effectively unavoidable: land transfer there runs through the notarial system. For a simple foreign bank account, the bank's own bereavement team may release modest balances against certified documents without local proceedings.

Foreign legal fees are an administration expense of the estate — paid from estate funds before beneficiaries, like UK probate costs. Get a written fee quote before instructing; notarial fees in some countries are percentage-based.

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