Inheritance Tax Non UK Domicile Spouse

Inheritance Tax Non UK Domicile, Spouse and Civil Partners

There are three areas to be aware of for foreign domiciles and non UK domiciles or moving overseas when thinking about UK Inheritance Tax.

1.  Foreign Non UK Domiciles Living in UK (you have not acquired a Domicile of Choice in UK)

• You are liable to UK Inheritance Tax on your UK assets only

2.  If you are UK Domicile but married or a civil partner to a Non UK Domicile care needs to taken with regard to inheritance tax planning

• If the UK Domicile dies first and leaves the entire estate to a non-domicile spouse  or civil partner anything over £55,000 is chargeable to Inheritance Tax.
• There are complex calculations required if only part of the estate is transferred to the non UK Domicile spouse/civil partner and for example, part of the estate is transferred to children, thus using up some or all of the Nil Rate Band Allowance.  Contact us for help with death and non UK domicile spouse and civil partners.

3.  Inheritance Tax for UK Domiciles living or moving Overseas - you may still be liable to UK Inheritance Tax

If you have acquired a Domicile of Choice in your new country you will have

• No UK Inheritance Tax to pay on Worldwide assets, you may still pay local death taxes.
• UK Inheritance Tax may be due on any UK owned assets only.

If you have not acquired a Domicile of Choice overseas and remain UK Domicile even living overseas, you are still liable to UK Inheritance Tax on your Worldwide assets, including assets in the country that you live, subject to local inheritance tax laws and any double taxation treaty.

Read more on Foreign Domiciles in the UK.