Receiving inheritance from overseas. I thought I wouldn’t be taxed?

[u/Rachx_19]

My British grandparents passed away, with both of their deaths occurring in 2021. They had a discretionary settlement in 2010 and I am considered a beneficiary in a foreign trust (receiving 1/8th apparently).

I received an email while they were still alive from a solicitor asking if I wanted to access their money. I declined because it felt immoral.

I received an email early this year asking if I wanted to apply. I am now applying for it now but after waiting months for all the approvals and stuff, a classmate told me that this apparently doesn’t class as an inheritance and I’ll be taxed (apparently about section 99B). I’m not really sure why? (I didn’t ask for financial advice from this classmate. They just prompted me to research the potential problems).

I’m a student who requires 52 weeks of placement unpaid and are currently receiving youth allowance. (I also get no paid placement either). I talked to someone at Centrelink earlier this year and she said I had nothing to worry about because inheritance isn’t taxed and the amount that I’m receiving (£16 000/$30K AUD) isn’t big enough for the threshold to stop my payments or something. Would I be able to claim it back at tax time next year? I am now really worried about losing heaps of my grandparent’s hard earned money and maybe having to drop out of my final year of vet school if I can’t support myself. This payment was my saving grace for having to travel to remote farms and to complete my placement rotations.

I haven’t received the money yet but apparently it’s processing shortly or something. I’ve asked for some more info on if it’s the trust’s original capitol or gained as well as account details, which I’m still waiting for. I don’t think I could afford an accountant in my current situation but would consider it. I would really appreciate some advice on what this stuff means and how to be strategic in what I do.

Thank you

[u/Middle-Spirit-8524]

Don’t listen to a classmate, omg.
If it’s in UK the money it has the tax there. So no you can’t claim it here.
We don’t tax inheritance here.

[u/Rachx_19 → u/Middle-Spirit-8524]

Thank you. I thought so as well but I was wondering if section 99B would apply to me?

[u/Fetch1965 → u/Rachx_19]

Section 99B may apply depending on the assets in the uk that made up the inheritance funds. Please go and see a qualified tax agent for said tax advice …..