inheritance tax planning

UK Inheritance Tax

This tax is very simple. If at the date of death you are:

A UK Domicile and your Worldwide assets are worth more than £325,000, tax will be due on anything over that @ 40%

Domicile

Do not confuse this with residency - just because you do not live in the UK does not mean you are not UK Domiciled.

The majority of UK expats living overseas will have a UK domicile. So just think if your worldwide assets total £500,000 then there is a tax bill of £70,000.

Points to Consider

With ever increasing property values it is not difficult to fall into the IHT trap. The first step is to calculate your assets on a worldwide basis then deduct the nil rate band - anything above the band is taxable!

Married Couples

New Legislation in the UK has effectively doubled the nil rate band for married couples on the second death, however you should still seek advice on how this would apply to you.

Profesional Advice

If you think you may have an IHT liability or would like clarification on what can be a confusing issue, please do not hesitate to contact us - we will assess your liability and advise you on the correct course of action at no cost.