US Inheritance. How will it affect me here??

My grandfather died nearly 6 years ago, and receiving my inheritance was dependent on his house being sold.  It's been sold, so once his estate is finally settled and everything I will be getting it, probably in 6 months or possibly even longer knowing how my dad operates.

Aside from having to figure out the US tax implications for this, how will it affect me for the UK?

I don't really plan on using it here, at least not for the foreseeable future.  I'm going to pay off grad school with most of it and leave the rest to sit in a US savings account until I maybe need it for part of a deposit to buy a house or something one day.  Who knows.

So, is there anything I need to keep in mind for UK tax purposes?  Thanks!! 

Good question.  As an only child I know this is something I'll have to deal with eventually too so I'm curious.

You won't have any "inheritance tax" implicatons in the UK from the receipt of this inheritance.  UK inheritance tax is paid by the giver - the deceased's estate.  There is no "gift" tax in the UK on receivers either.  You won't need to declare the receipt of the capital of your inheritance for UK taxes.

Depending on whether you are domiciled in the UK or not, the tax rules on income from the inheritance are different.  If you are domiciled in the UK you will need to declare any interest you receive even if it stays in the US.  If so you will have to pay UK tax on any interest received but will be able to reclaim any US tax paid under double taxation agreements when filing your US return.  You will also be liable to any Capital Gains tax under UK rules.  If you aren't domiciled in the UK the rules are complicated and I hope one of the "experts" will help you out.

There is either a gain or loss in Sterling over 6 years.  The inheritance is tax-free but you need to calculate the gain or loss to complete your 2011/12 UK return.

Thanks guys! 

There is either a gain or loss in Sterling over 6 years.  The inheritance is tax-free but you need to calculate the gain or loss to complete your 2011/12 UK return.

How do I go about doing this?  I'm completely clueless in all matters relating to taxes.