With the average UK inheritance tax bill for estates over the nil rate threshold now standing at £179,000 it pays to understand your own position and to do what you can to minimise your liability wherever possible. These are the key issues for Expatriates.
You could still be UK- domiciled
Even if you have lived abroad for a number of years you can still be deemed UK domiciled which means your worldwide assets will be subject to UK IHT. This will certainly be the case when you hold onto any UK assets or show any intention to return to the UK one day. Acquiring a domicile overseas can be tricky even if you sever all ties with the UK.
UK asset are always liable to UK IHT
Changes in property tax rules mean that all UK residential property is subject to UK IHT wherever you are domiciled and in whatever structure It is owned.
You will likely be subject to local taxes also
Living abroad and owning assets such as property in your new country of residence can mean an additional liability which sometimes cannot be offset against UK tax.
The standard nil rate band is only £325,000
Owning a UK property may well tip you over the threshold before any of your other assets are taken into account.
Our experts will help you mitigate this tax and reduce the cost to your estate so why not do something about it whilst you have the chance.
