{"id":1537,"date":"2016-03-03T09:32:49","date_gmt":"2016-03-03T09:32:49","guid":{"rendered":"http:\/\/www.bwmltd.org\/wordpress\/?p=1537"},"modified":"2016-03-03T09:32:49","modified_gmt":"2016-03-03T09:32:49","slug":"living-outside-the-uk-2","status":"publish","type":"post","link":"https:\/\/www.vizionwealth.co.uk\/news\/living-outside-the-uk-2\/","title":{"rendered":"Living outside the UK"},"content":{"rendered":"

What happens when someone dies?<\/strong><\/p>\n

When someone living abroad dies, the rules for paying Inheritance Tax (IHT) usually depend on:<\/strong><\/p>\n

\u2022 How long they lived abroad
\n\u2022 Whether their assets (property, money and possessions) are in the UK or abroad
\n\u2022 If their assets in the UK are\u2018excluded assets\u2019
\n\u2022 If their assets were put into a trust<\/p>\n

How long the deceased lived abroad For IHT purposes, HM Revenue and Customs (HMRC) can treat someone who had their\u00a0permanent home (\u2018domicile\u2019) abroad\u00a0as if it was in the UK (known as \u2018deemed domicile\u2019) if they had either:<\/strong><\/p>\n

\u2022 Had their permanent home in the UK at any time in the three years before they died
\n\u2022 Been\u00a0resident\u00a0in the UK for at least 17 of the 20 Income Tax years up to their death If the deceased is deemed domiciled in the UK, their estate has to pay UK IHT on all their assets.<\/p>\n

If they aren\u2019t deemed domiciled, their estate:<\/strong>
\n\u2022 Has to pay IHT on their assets (except excluded assets) in the UK
\n\u2022 Won\u2019t have to pay UK IHT on their assets outside the UK<\/p>\n

HMRC\u00a0only recognises a change of domicile if there\u2019s strong evidence that someone has permanently left the UK and intends to live abroad indefinitely.<\/p>\n

UK assets you don\u2019t pay<\/strong><\/p>\n

Inheritance Tax on The estate doesn\u2019t have to pay
\nIHT on some assets in the UK if the deceased was
\ndomiciled abroad. These are known as \u2018excluded assets\u2019.<\/p>\n

They include:<\/strong>
\n\u2022 Holdings in authorised unit trusts and open-ended investment companies (OEICs)
\n\u2022 Foreign currency accounts with a bank or the Post Office
\n\u2022 UK government gilts which were issued \u2018free of tax to residents abroad\u2019
\n\u2022 Overseas pensions
\n\u2022 Pay and possessions of members of visiting armed forces and staff of allied headquarters<\/p>\n

Government gilts There\u2019s no Inheritance Tax payable
\non government gilts issued:<\/strong>
\n\u2022 Before 30 April 1996 \u2013 and the deceased wasn\u2019t deemed domiciled or resident in the UK
\n\u2022 On or after 30 April 1996 \u2013 and the deceased wasn\u2019t resident in the UK<\/p>\n

Channel Islands and Isle of Man<\/strong>
\nNational Savings Certificates or certain other forms of small savings are excluded from Inheritance Tax if the deceased was domiciled (not deemed domiciled) in the Channel Islands or the Isle of Man.<\/p>\n

Double-taxation treaties<\/strong>
\nYou may be able to avoid or reclaim tax through a\u00a0double-taxation treaty\u00a0if Inheritance Tax is charged on the same assets by the UK and the country where the deceased lived.<\/p>\n

Trusts<\/strong>
\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":"

What happens when someone dies? When someone living abroad dies, the rules for paying Inheritance Tax (IHT) usually depend on: \u2022 How long they lived abroad \u2022 Whether their assets (property, money and possessions) are in the UK or abroad \u2022 If their assets in the UK are\u2018excluded assets\u2019 \u2022 If their assets were put… Read more »<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"_links":{"self":[{"href":"https:\/\/www.vizionwealth.co.uk\/news\/wp-json\/wp\/v2\/posts\/1537"}],"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=1537"}],"version-history":[{"count":0,"href":"https:\/\/www.vizionwealth.co.uk\/news\/wp-json\/wp\/v2\/posts\/1537\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vizionwealth.co.uk\/news\/wp-json\/wp\/v2\/media?parent=1537"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vizionwealth.co.uk\/news\/wp-json\/wp\/v2\/categories?post=1537"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vizionwealth.co.uk\/news\/wp-json\/wp\/v2\/tags?post=1537"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}