Inheritance Tax in the UK is the tax that many don’t think about, either because it means thinking about your own death, or it is considered to be of lesser importance than income tax and capital gains tax.
However, the tax at stake can be significant, with tax payable at 40% on the value of the chargeable estate of a deceased person over and above the nil rate band and (where available) the main residence nil rate band.
The scope of a charge to IHT is a function of an individual’s domicile rather than residency, although the resumption of tax residency in the UK can revive a former UK domicile of origin where an individual has acquired a domicile of choice outside the UK.
In addition, even if you acquire a domicile of choice outside the UK your UK based estate remains within the charge to UK IHT.
Planning can therefore be key, particularly if you move to a new country such as Australia and want to take steps to ensure that your estate in Australia will not be at risk to a charge to UK IHT.
bdh Tax is experienced in planning to mitigate the effects of UK Inheritance Tax. We offer the following IHT planning services to individuals who are have departed the UK to live and work in a new country:
- Reviewing your estate, so we can compute the amount of your UK IHT exposure
- Looking at your domicile and residency in the UK, to establish the scope for asserting non dom status in the UK
- Advising further steps that can be taken to confirm you are not domiciled in the UK
- Commenting on your Will/s: it is frequently the case that Wills prepared in the UK and the country in which you are residing will be preferable than having one Will administering your worldwide estate for reasons of costs (for example, the need for the re-sealing of an overeas Will) and timing
bdh Tax also assists executors with the administration of the deceased’s estate in the context of UK IHT forms for preparation and delivery to HM Revenue – for example the IHT400 series forms – agreeing the value of the estate with HM Revenue, and confirming the IHT payable.
We provide a fixed fee quote whenever possible.
If you are concerned about your UK Inheritance Tax position or require assistance with the administration of a deceased person’s estate in the UK and would like a no obligation fee proposal please contact us by completing the enquiry form on this webpage, or telephone the bdh Tax office that is closest to you.
We look forward to hearing from you.