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Our Private Client Services

Domicile & international estates

Inheritance tax planning

PWT Advice will be able to advise you on your domicile and how this may work to your advantage from an inheritance tax point of view.

If you have a foreign domicile of origin and become deemed domiciled in the UK for inheritance tax purposes then your worldwide assets will be subject to UK inheritance tax. If you become deemed domiciled in the UK but leave the UK to live elsewhere in the world and die at least three years after you leave your domicile will revert to your domicile of origin and only your UK assets will be subject to UK Inheritance Tax. If you think that you will soon become deemed UK domiciled then now is the time to take legal advice because once you become deemed domiciled you will have lost out on some valuable inheritance tax planning.

Another important point to note is that if a UK domiciled person is married or in a civil partnership with a non-UK domiciled person then the spouse relief is limited to £55,000 when assets pass from the domiciled to the non-UK domiciled spouse/civil partner (this may be extended following a consultation announced in the Budget 2012). This means that any part of the UK domiciled spouse's estate that passes to the non-UK domiciled person in excess of the Nil Rate Band applicable at the time of their death (currently £325,000) will be taxed at 0% on the first £55,000 but at 40% on the excess. Your spouse or civil partner will have to pay inheritance tax, which could otherwise have been avoided with some careful planning. PWT Advice will be happy to help.

For a no-obligation discussion, call us on + 44(0)345 833 9025

We've listed the areas we can advise on in detail but we don't want to waste your valuable time. If you're not sure whether we can help, just email us or call on + 44(0)345 833 9025. We're happy to have a look at your issues and confirm if we can help.