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The short answer
In the UK and Canada, receiving an inheritance from a parent in Nigeria is normally not taxed on the person who receives it, and in the UK inheritance tax reaches only UK assets of someone based abroad. The US does not tax it as income, but a US person must report bequests from a foreign estate over $100,000 in a year on Form 3520. Ireland is the exception: it charges capital acquisitions tax on inheritances above lifetime thresholds, €420,000 for a child inheriting from a parent. Income and gains the assets produce afterwards are taxable as normal.
When a parent dies in Nigeria, the first months go on the court grant, the family meeting and the house. Tax abroad is rarely on the list. It should be, because the record you make now, especially of what each asset was worth at the date of death, decides the tax on any later sale in Nigeria and abroad.
Nigeria first
Bloomberg Tax's February 2026 analysis of the Nigeria Tax Act 2025 says receiving an inheritance is not a chargeable disposal, and heirs take the assets at their market value at the date of death. If you sell the house or shares later, your Nigerian capital gain is measured from that value. Getting money out of a deceased person's accounts needs probate or letters of administration first; see moving a Nigerian inheritance abroad and our guide to letters of administration.
Where you live
United Kingdom
GOV.UK says beneficiaries "do not normally pay tax on things they inherit"; inheritance tax, where due, is paid by the estate. For someone based outside the UK when they die, it applies only to their UK assets, and GOV.UK treats a person as based abroad if they lived in the UK for less than 10 of the last 20 years. A parent who always lived in Nigeria and owned nothing in the UK is generally outside UK inheritance tax. You may still owe UK tax on income from what you inherit, such as rent.
United States
The IRS treats foreign gifts and bequests as not subject to income tax, but a US person who receives more than $100,000 in the tax year from a nonresident alien or a foreign estate must file Form 3520, an information return. Late or incomplete filing lets the IRS determine the tax consequences, so do not skip it because no tax is due.
Canada
CRA lists "most gifts and inheritances" among amounts that are not reported or taxed. Income earned on them, such as interest or rent, is taxable.
Ireland
Ireland charges capital acquisitions tax on the person who inherits, above lifetime group thresholds. Revenue's threshold page shows, for benefits taken on or after 7 October 2026, €420,000 for Group A (a child inheriting from a parent), €44,000 for Group B and €22,000 for Group C. Earlier gifts and inheritances from the same group since 5 December 1991 count towards the threshold. Whether an inheritance of Nigerian property is within the charge depends on the residence of the deceased and of the heir at the relevant dates; confirm your position with Revenue or an adviser.
| Country | Tax on receiving? | Reporting |
|---|---|---|
| UK | Normally no; estate pays any IHT, UK assets only if deceased based abroad | Declare later income |
| US | No income tax on the bequest | Form 3520 over $100,000 a year |
| Canada | Most inheritances not taxed | Declare later income |
| Ireland | CAT above lifetime thresholds | CAT return where required |
Worked example (illustration only)
Ifeoma lives in London. Her mother, who always lived in Enugu, leaves her a house valued at ₦120,000,000 at the date of death. No UK inheritance tax arises, and none falls on Ifeoma for receiving it. She lets the house: the rent is her income in the UK (see declaring Nigerian rent). Three years later she sells for ₦150,000,000. In Nigeria, the gain starts from ₦120,000,000, so it is ₦30,000,000 before selling costs. In the UK, she reports the gain under UK rules, converting the value at death and the sale price at the rates for those dates, and claims credit for the Nigerian tax.
Had she sold at ₦125,000,000 without a valuation at death, she might struggle to prove the ₦120,000,000 base.
While the estate is still being settled
Nigerian estates often take years, and families sometimes leave property undivided with one sibling managing it. That creates two tax questions abroad. First, when did you actually receive your share: at death, at the grant, or when the property was transferred or sold? Second, is rent collected in the meantime your income or the estate's? Answers differ by country. Keep minutes of family decisions, the administrators' accounts and any written agreement among siblings, so you can show your tax office what you owned and when. Our guide to selling inherited property with siblings covers the family side.
What to record now
- A professional valuation of each property at the date of death.
- Statements of each bank account and share holding at that date.
- The court grant and the distribution under the will or intestacy rules.
- Exchange rates for the date of death, for your home-country records.
- Any Nigerian tax receipts once assets produce income or are sold.
Selling later? Read capital gains tax on Nigerian property before agreeing a price.
Where Pryme fits
Inherited naira can sit in a Pryme account until you decide what to convert, with the rate and fee shown before you approve. Pryme does not hold estates or replace the court process. This page is information, not tax or legal advice.
Questions people ask
Do I pay inheritance tax in the UK on property in Nigeria?
Not normally if the deceased was based outside the UK: UK inheritance tax then reaches only UK assets, and beneficiaries do not normally pay tax on what they inherit.
Do I report a Nigerian inheritance to the IRS?
Yes on Form 3520 if bequests and gifts from foreign persons exceed $100,000 in the tax year. It is not taxed as income.
Is an inheritance from Nigeria taxed in Canada?
CRA says most inheritances are neither reported nor taxed. Income earned on them afterwards is taxable.
Is inheriting a house in Nigeria taxed in Nigeria?
Receiving it is not a chargeable disposal under the 2026 rules, according to Bloomberg Tax; a later sale is measured from the value at death.
Sources
- Bloomberg Tax: New Nigeria tax law redefines capital gains tax for individuals (2 Feb 2026) · accessed Oct 2026
- 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
- IRS: Gifts from foreign person (updated 17 Apr 2026) · accessed Oct 2026
- CRA: Amounts that are not reported or taxed (modified 17 Sep 2026) · accessed Oct 2026
- Revenue: CAT group thresholds (published 7 Oct 2026) · 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.