Hi -- No taxation on the amount you gift itself, and providing you survive for a further Seven years after making the gift it will not even be liable for UK inheritance tax....in the event your total estate was large enough to be liable for IHT.

Thanks that's great to know. Supposing I was mad and did want to give $50,000 of it away to another person, would there be 'gift tax' applied on that or could I simply transfer any amount I wanted into someones bank account???

Hi -- Once the inheritance has been subjected to USA taxation and liabilities paid in the Country of origin, there will be no further UK liability.

what do I have to do once I get the funds?

Send them to me. !

I have the situation where my aunt has passed away, she is American and lived in America and is leaving most of the estate to myself and another family member. So if I individually recieve between $400,000 and $500,000 (the money is curretly being subjected to inheritace laws in the USA before it comes to me), what do I have to do once I get the funds? Will it be subject to any UK inheritance tax here? Thanks for any advice.