Bernard StoneOn 20 March 2026 at 2:46pm GMT, more than 300 million people across the world marked Nowruz — the Persian New Year — as the vernal equinox arrived, including an estimated 300,000 to 500,000 people of Iranian, Afghan, Kurdish, and Central Asian heritage living in the United Kingdom, many of whom are now navigating the financial complexities of celebrating in one country while maintaining assets, family ties, and obligations in another.
What Nowruz means in 2026 — and why the timing matters
Nowruz, meaning "new day" in Persian, marks the first day of spring and has been celebrated for more than 3,000 years. In 2026, it falls at precisely the spring equinox on 20 March. The celebration traditionally involves family reunions, gifts, charitable giving, and renewal — but for UK-based expats with ties to Iran, Afghanistan, Tajikistan, or other Nowruz-celebrating countries, it also coincides with a period of significant financial uncertainty.
The ongoing Iran-Israel war and Western sanctions on Iran have added layers of complexity to the financial situation of the Iranian diaspora in Britain. Sending money to family in Iran is severely restricted. Remittances through formal banking channels have been largely unavailable since 2012, and the OFSI (Office of Financial Sanctions Implementation) under HM Treasury maintains a list of sanctioned entities and individuals.
For many UK-based Iranians, Nowruz is also an occasion for gifting property, money, and assets — raising questions around inheritance tax, cross-border gifts, and estate planning.
The three financial issues UK expats face at Nowruz
1. Gifting and inheritance tax implications
It is a common tradition at Nowruz to give gifts of money or gold to younger family members. In the UK, gifts are subject to HMRC inheritance tax rules if the donor dies within seven years of making the gift. Gifts up to £3,000 per tax year are exempt under the "annual exemption" allowance. Larger gifts — or multiple gifts to the same person — can create inheritance tax liability if not properly structured.
For those gifting to family members in Iran or Afghanistan, the added complexity of sanctions means cash transfers through informal systems (hawala) carry legal risks, as they can fall outside FCA-regulated frameworks.
2. Property and assets across borders
Some UK-based Nowruz communities hold property or business interests in Iran, Tajikistan, Kurdistan, or Afghanistan — countries with different inheritance laws and, in some cases, no bilateral inheritance treaty with the UK. If a UK resident dies without a will that explicitly addresses overseas assets, those assets may be distributed according to local law, which may not reflect the deceased's wishes.
A UK-based wealth manager or solicitor specialising in cross-border estates can help ensure your will covers all your assets, wherever they are located.
3. Sanctions compliance
Under current UK law, UK nationals and residents must not provide financial services or transfer funds — directly or indirectly — to entities or individuals on the OFSI sanctions list. This includes banks, businesses, and family members in Iran who may be associated with sanctioned organisations.
Sending money for Nowruz celebrations to family in Iran is a grey area. Humanitarian payments for food and medicine are generally exempt, but cash transfers for celebration purposes are not. The penalties for breaching financial sanctions can include unlimited fines and up to seven years in prison.
If you are unsure whether a planned transfer is compliant, a solicitor or regulated financial advisor can assess your specific situation before you act.
Nowruz as a moment for financial renewal
There is a reason Nowruz is associated with spring cleaning and new beginnings. For UK-based expats, it is also an opportunity to review your financial situation, update your will, and ensure your assets are protected for future generations.
Practical steps worth taking this Nowruz:
- Review your will: If you have not updated your will since acquiring UK assets or obtaining residency/citizenship, do so now. Cross-border estates require specialist drafting.
- Check your ISA and pension contributions: The 2025/26 UK tax year ends on 5 April 2026. This is your last chance to use your annual ISA allowance of £20,000.
- Speak to a wealth manager: Cross-border financial planning — covering inheritance tax, overseas assets, currency risk, and sanctions compliance — benefits significantly from expert guidance.
- Understand your gifting allowances: If you plan to give significant gifts at Nowruz, ensure they are structured in a tax-efficient and compliant way.
Important disclaimer: This article is for general information only and does not constitute financial or legal advice. UK sanctions law, inheritance tax, and estate planning involve complex personal circumstances. Always consult a qualified professional before making decisions.
Where to find the right expert
The Iranian, Afghan, and Central Asian communities in the UK are among the most educated and economically active in the country. Yet financial planning tailored to their specific cross-border needs remains underserved.
On Expert Zoom, you can connect with wealth managers and legal specialists who understand the nuances of cross-border estates, UK-Iran financial restrictions, and multicultural inheritance planning — available online, without the need for a face-to-face appointment.
Whether you need help with a will, a gifting strategy, or understanding what you can and cannot send to family abroad, expert guidance makes a significant difference.
Sources: Newsweek, Times of Israel, OFSI/HM Treasury, HMRC Inheritance Tax guidance, The Conversation, Washington Post
