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The short answer
For deaths after 5 April 2025, UK inheritance tax depends on residence, not domicile. If you have lived in the UK for at least 10 of the last 20 years, your worldwide estate, including a house or land in Nigeria, can be within UK inheritance tax. If you have lived in the UK for less than 10 of the last 20 years, only UK assets are taxed. The rate is 40% above the £325,000 threshold.
Many Nigerians in the UK own their main wealth at home: a family house in Enugu, plots in Abuja, shares bought years ago. It is easy to assume a British tax could not touch land in Nigeria. Since April 2025 that depends mainly on how long you have lived in the UK. This guide explains the test and the numbers. It is information, not legal or tax advice.
The rules in brief
GOV.UK sets out the basics: inheritance tax is paid on an estate above the £325,000 threshold at 40%, and the threshold can rise to £500,000 where a home passes to children or grandchildren. Anything left to a spouse or civil partner is generally exempt. The executor pays from the estate; GOV.UK says beneficiaries do not normally pay tax on things they inherit.
The 10-in-20 test
GOV.UK's page on someone living outside the UK says HMRC treats you as based abroad if you have lived in the UK for less than 10 years in the last 20. People based abroad pay inheritance tax only on UK assets. The page also lists assets that are excluded for them, including foreign currency accounts with a bank or the Post Office and overseas pensions.
For deaths on or before 5 April 2025, the old rules applied: you were UK-based if your permanent home (domicile) was in the UK, if you had lived in the UK for 15 of the last 20 years, or if you had a permanent home in the UK at any time in the last three years of your life.
| Your time in the UK | Deaths after 5 April 2025 | What it means for Nigerian property |
|---|---|---|
| Less than 10 of the last 20 years | Based abroad | Nigerian property outside UK inheritance tax; UK assets taxed |
| 10 or more of the last 20 years | Not based abroad | Worldwide estate in scope, including Nigerian land and accounts |
The GOV.UK page sets out the 'based abroad' side in detail and says less about the other side, so treat the second row as the general position and take advice on your estate. Our guide on inheritance tax after 10 of 20 years looks at the counting.
Worked example
Example. Dr Eze has lived in the UK since 2012 and dies in 2027, a widower leaving everything to his two children. He has lived in the UK for more than 10 of the last 20 years.
| Asset | Value |
|---|---|
| Home in Kent | £420,000 |
| House in Enugu (valued in pounds at death) | £140,000 |
| UK savings | £40,000 |
| Total estate | £600,000 |
| Threshold, with the home passing to children (if the full increase applies) | £500,000 |
| Taxable | £100,000 |
| Inheritance tax at 40% | £40,000 |
Had he lived in the UK for only eight of the last 20 years, the Enugu house would fall outside the tax and the estate in scope would be £460,000, below the £500,000 figure. Whether the full increase above £325,000 applies depends on rules this guide does not cover, including the value of the estate and what was claimed on a spouse's earlier death.
Valuing Nigerian property
The executor has to put a sterling value on the Nigerian assets at the date of death. A written valuation from a registered Nigerian valuer is the usual evidence; our guide to valuing Nigerian property from abroad explains the process. Untitled or family land is harder to value and to transfer, which is a reason to sort title early.
Tax in Nigeria and double taxation
GOV.UK says an executor might be able to reclaim tax under a double taxation treaty if both the UK and the other country charge inheritance tax on the same assets. The 1987 UK–Nigeria convention we read deals with taxes on income and capital gains, so do not assume it covers inheritance tax. Any Nigerian costs of administering the estate and transferring the land are separate from UK inheritance tax.
Gifts during your life
Giving property or money away during your life can take it out of your estate, but GOV.UK's gift rules mean a gift is generally counted if you die within seven years, with any tax on gifts reduced on a sliding scale for gifts made three to seven years before death. A gift of Nigerian land may also have UK capital gains tax consequences, which our guide to gifting Nigerian land to a child explains. Weigh both before transferring title.
What to check first
- Count your years of UK residence in the last 20.
- List Nigerian assets with title documents and rough values.
- Make a will that works in both countries; a UK will may not deal neatly with Nigerian land.
- Consider lifetime gifts; see large gifts and the seven-year rule.
- Read who pays tax on a Nigerian estate if you expect to inherit.
Keep copies of title documents, valuations and receipts somewhere your executor can find them; Pryme's verifiable statements can help show balances held at a given date.
Questions people ask
Does UK inheritance tax apply to property in Nigeria?
For deaths after 5 April 2025, yes if you have lived in the UK for 10 or more of the last 20 years. If less, only UK assets are taxed.
What is the UK inheritance tax rate and threshold?
40% above £325,000. The threshold can rise to £500,000 if your home passes to children or grandchildren.
Do my children pay inheritance tax on my Nigerian house?
The estate pays, through the executor. GOV.UK says beneficiaries do not normally pay tax on what they inherit.
Does the UK–Nigeria tax treaty cover inheritance tax?
The 1987 convention covers income tax and capital gains. Do not assume it gives relief for inheritance tax.
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
- GOV.UK: Inheritance Tax, gifts · accessed Oct 2026
- UK–Nigeria Double Taxation Convention 1987 (GOV.UK PDF) · 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.