UK Non-Residents and Inheritance Tax

Inheritance tax is a sensitive subject. There are many different ways to view inheritance that range from ‘the inheritance generation is lucky’ to avoiding talking about it at all. All that hard work of your forefathers was meant to help you, and your family, to secure your financial future. Whether the inheritance you leave is large or small it will still be liable for tax even if you are a UK Non-Resident. So don’t leave it too late to get some good advice from a professional UK Non-Resident tax advisor like The Taxman UK.

Intergenerational Savings

Good tax planning can help you save money and tax across generations of your family. With taxes such as income tax and capital gains tax if you are a UK Non-Resident then your UK income is subject to tax in the UK. A good, professional UK Non-Resident tax advisor at The Taxman UK can help you minimise your tax bill and make your tax return for you, saving you time, money and stress. With inheritance tax there are some differences to other taxes. For inheritance tax useful tax planning can be carried out to mitigate part or most of your liability and help yourself and your heirs with intergenerational savings.

Intergenerational Savings
UK Non-Resident and UK Non-Domicile

UK Non-Resident and UK Non-Domicile

Rather than looking at your actual residence status at the point the individual passes away, in order to determine the inheritance tax position on UK assets for UK Non-Residents, HMRC will consider whether or not you are UK domiciled. Domicile is a legal concept which considers an individual’s long term home. So if you are UK domiciled as well as a UK Non-Resident at the time of passing, inheritance tax will be payable on your worldwide assets if the total value is over the inheritance tax threshold, currently £325,000 for individuals.

Worldwide assets

If you are UK Non-Domiciled and a UK Non-Resident when you pass away, then rather than your worldwide assets being subject to UK Inheritance tax, only your UK assets will be deemed subject to UK tax. If you are deemed UK domiciled when you pass away, your worldwide assets will now fall under UK Inheritance Tax and be subject to a possible 40% rate of tax. Any assets held outside the UK will not be subject to UK Inheritance tax but may be subject to taxes in the county in which you reside.So just like all other taxes in the UK, inheritance tax for UK Non-Residents is something that should be carefully considered if you hold UK and Non-UK assets and are unsure about your residency status.

The easiest solution is to get good professional advice from a good, professional UK Non-Resident tax advisor. Please don’t hesitate to contact one of our experienced UK Non-Resident tax advisors by sending us an enquiry at help@thetaxmanuk.com for an initial consultation. Good tax advice will save you time, money and stress, whether you are leaving an inheritance or receiving one.

The Taxman UK  “Making Life Less Taxing for UK Non-Residents”

Worldwide assets