When someone living abroad dies, the rules for paying Inheritance Tax usually depend on:<\/p>\n
\u2022 How long they lived abroad
\n\u2022 Whether their assets (property,
\nmoney and possessions) are in the UK or abroad
\n\u2022 If their assets in the UK are
\n‘excluded assets’
\n\u2022 If their assets were put into a trust<\/p>\n
How long the deceased lived abroad<\/strong><\/p>\n For IHT purposes, HM Revenue and Customs (HMRC) can treat someone who had their\u00a0permanent home (‘domicile’) abroad\u00a0as if it was in the UK (known as ‘deemed domicile’) if they had either:<\/p>\n \u2022 Had their permanent home in the UK If the deceased is deemed domiciled in the UK, their estate has to pay UK IHT on all their assets. \u2022 Has to pay IHT on their assets (except excluded assets) in the UK HMRC\u00a0only recognises a change of domicile if there’s strong evidence that someone has permanently left the UK and intends to live abroad indefinitely.<\/p>\n UK assets you don’t pay Inheritance Tax on<\/strong> \u2022 Holdings in authorised unit trusts There’s no IHT payable on government gilts issued:<\/strong><\/p>\n \u2022 Before 30 April 1996 \u2013 and the deceased wasn’t deemed domiciled or resident in the UK Channel Islands and Isle of Man<\/strong> Double-taxation treaties<\/strong> Trusts<\/strong> What happens when someone dies? When someone living abroad dies, the rules for paying Inheritance Tax usually depend on:<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5,7],"tags":[],"_links":{"self":[{"href":"https:\/\/www.vizionwealth.co.uk\/news\/wp-json\/wp\/v2\/posts\/1246"}],"collection":[{"href":"https:\/\/www.vizionwealth.co.uk\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vizionwealth.co.uk\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vizionwealth.co.uk\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vizionwealth.co.uk\/news\/wp-json\/wp\/v2\/comments?post=1246"}],"version-history":[{"count":0,"href":"https:\/\/www.vizionwealth.co.uk\/news\/wp-json\/wp\/v2\/posts\/1246\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vizionwealth.co.uk\/news\/wp-json\/wp\/v2\/media?parent=1246"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vizionwealth.co.uk\/news\/wp-json\/wp\/v2\/categories?post=1246"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vizionwealth.co.uk\/news\/wp-json\/wp\/v2\/tags?post=1246"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\nat any time in the three years before they died
\n\u2022 Been\u00a0resident\u00a0in the UK for at least
\n17 of the 20 Income Tax years up to their death<\/p>\n
\nIf they aren’t deemed domiciled, their estate:<\/p>\n
\n\u2022 Won’t have to pay UK IHT on their assets outside the UK<\/p>\n
\nThe estate doesn’t have to pay IHT on some assets in the UK if the deceased was domiciled abroad. These are known as ‘excluded assets’. They include:<\/p>\n
\nand open-ended investment
\ncompanies (OEICs)
\n\u2022 Foreign currency accounts with a bank or the Post Office
\n\u2022 UK government gilts which were issued ‘free of tax to residents abroad’
\n\u2022 Overseas pensions
\n\u2022 Pay and possessions of members of visiting armed forces and staff of
\nallied headquarters
\nGovernment gilts<\/p>\n
\n\u2022 On or after 30 April 1996 \u2013 and the deceased wasn’t resident in the UK<\/p>\n
\nNational Savings Certificates or certain other forms of small savings are excluded from IHT if the deceased was domiciled (not deemed domiciled) in the Channel Islands or the Isle of Man.<\/p>\n
\nYou may be able to avoid or reclaim tax through a\u00a0double-taxation treaty\u00a0if IHT is charged on the same assets by the UK and the country where the deceased lived.<\/p>\n
\nThere are different rules if the deceased put assets outside the UK into a\u00a0trust while they were domiciled in the UK.<\/p>\n","protected":false},"excerpt":{"rendered":"