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The short answer
If you live in the UK and inherit from a parent or relative in Nigeria, you will not normally pay UK Inheritance Tax on what you receive: GOV.UK says the estate pays, beneficiaries do not normally pay tax on what they inherit, and for someone based outside the UK it applies only to UK assets. The longer task is on the Nigerian side, where banks release a deceased person's money only against probate (if there is a will) or letters of administration (if there is not).
Losing a parent in Nigeria while living in the UK brings grief and a long list of practical problems. One of them is the estate: how it is released, whether the UK will tax it, and how to bring your share to the UK. This guide explains the general position. Estates vary a great deal, so treat it as information to prepare for conversations with a lawyer in Nigeria, not as legal or tax advice.
UK tax on what you inherit
GOV.UK says Inheritance Tax is paid from the estate of the person who died, usually by the executor, and that beneficiaries "do not normally pay tax on things they inherit". It adds that you may owe tax on income from what you inherit, such as rent from a house.
For a relative who lived in Nigeria, GOV.UK's guidance on people living outside the UK applies: someone who has lived in the UK for less than 10 of the last 20 years is treated as based abroad, and Inheritance Tax is only paid on their UK assets. Foreign currency bank accounts and overseas pensions are among the assets it excludes. So a Nigerian estate of Nigerian property and accounts generally falls outside UK Inheritance Tax. If your relative had UK property or a UK bank account, those UK assets can be within scope.
Releasing the estate in Nigeria
Being named next of kin does not entitle you to a bank balance. Daily Trust's explainer notes that next of kin is not automatically entitled to inherit and that banks need probate (where there is a will) or letters of administration (where there is no will) before they release funds. For more, see does next of kin inherit a bank account in Nigeria.
A Lagos practice note published on Mondaq in May 2024 describes the letters of administration process in stages:
- An application with the death certificate and a list of assets, including bank accounts, shares and property.
- At least two administrators.
- A certificate from each bank, endorsed by the bank, confirming the balance.
- Estate fees calculated as a percentage of the estate's value.
- Two sureties with an affidavit of means, and an interview.
- Publication in a newspaper, giving 21 days for anyone to object, before the grant is issued.
Other states have their own probate registries and rules. Being in the UK, you may be able to act through someone else or be one of the administrators remotely; ask a Nigerian lawyer what your state's registry allows.
Moving your share to the UK
Once the estate is distributed, your share is usually paid in naira into a Nigerian account in your name. From there:
- Decide how much to keep in naira. If you plan to build on inherited land or support family, some of it is already a naira cost.
- Convert in stages if the amount is large, rather than all at once.
- Keep the grant of probate or letters of administration, the distribution account and every transfer record. Your UK bank is likely to ask where a large sum from Nigeria came from, and these documents answer that. See proving the source of money from Nigeria.
- If the deposit is large, note that the FSCS covers eligible UK deposits up to £120,000 per person per firm, and up to £1.4m for six months for some temporary high balances from life events.
The legal routes out of Nigeria are covered in moving savings from Nigeria to the UK legally.
If you are an administrator living in the UK
- Keep certified copies of the death certificate and your identity documents ready; registries and banks ask for them repeatedly.
- Agree in writing with the other administrators who handles which bank, property and share registrar.
- Ask each bank for its own list for releasing a deceased customer's funds; it may want the grant, the death certificate and administrators' identification.
- Keep an estate account of money collected, debts and costs paid, and what each beneficiary received. That account later doubles as your source-of-funds evidence in the UK.
- Be wary of anyone who offers to speed up the grant for a payment outside the official fees.
After you inherit: income and gains
Once the assets are yours, what they earn is yours too. GOV.UK says UK residents are normally taxed on all their income, wherever it arises. Rent from an inherited house in Nigeria, interest on naira deposits and dividends on Nigerian shares are generally reportable. The 1987 UK-Nigeria double taxation agreement lets Nigeria tax rent from property there and gives credit in the UK for tax paid in Nigeria. Receiving rent is covered in receiving rent from a Nigerian property in the UK. Selling an inherited asset later may also raise tax questions in either country, so take advice before a sale.
Where Pryme fits
A Pryme account can receive your naira share in Nigeria and hold it alongside pounds, so you can decide when to convert. Swap shows the rate first and the fee on its own line before you approve. Naira deposits are held by a licensed Nigerian microfinance bank, insured by the NDIC up to the applicable limit.
Questions people ask
Do I pay inheritance tax in the UK on money inherited from Nigeria?
Not normally. GOV.UK says the estate pays and beneficiaries do not normally pay tax on what they inherit. For someone based abroad, UK Inheritance Tax applies only to UK assets.
How do I get my late parent's money out of a Nigerian bank?
Banks release funds against probate (with a will) or letters of administration (without a will). Being next of kin is not enough on its own.
Will my UK bank question a large inheritance from Nigeria?
Likely. Keep the grant, the estate distribution account and the transfer records to show the source.
Is rent from an inherited house in Nigeria taxable in the UK?
If you are UK resident, generally yes, with credit for Nigerian tax under the UK-Nigeria treaty. This is information, not advice.
Sources
- GOV.UK: Inheritance Tax (updated 30 Sep 2026) · accessed Oct 2026
- GOV.UK: Inheritance Tax when someone living outside the UK dies · accessed Oct 2026
- Daily Trust: Explainer, why next of kin cannot access a deceased's inheritance (10 Dec 2023) · accessed Oct 2026
- Mondaq: Issuance of letters of administration in Nigeria, a practical approach (29 May 2024) · accessed Oct 2026
- GOV.UK: Tax on foreign income, residence (updated 1 Oct 2026) · accessed Oct 2026
- FSCS: Check your money is protected · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.