Inheritance Tax: How does it work? (UK)

[@Coolhandmeister]

I am non-resident in the UK, but have investments there. Both my parents were British, so considered UK domiciled by origin..Will my estate be liable to UK inheritance tax, and would that be on worldwide assets?

[@WealthofAdvice]

Thank you for your comment - this is an interesting question! Domicile is a complicated process, which isn’t as simple as domiciled by origin. Essentially, domicile should be where you intend to die or expect your estate to be administered. Given your situation, we would suggest seeking legal advice to help you confirm you own position. Hopefully this is helpful!

[@SteveMoore1969]

With IHT Is there an order you must apply the additional residential nil rate on married couples being £350k first? Then 650k allowance! Basically my question is as long as the house is over £350k then your do not pay 40% upto assets of £1million?

[@WealthofAdvice]

Hi Steve Thank you for the question. In your scenario on second death in order to benefit from two full Residential Nil Rate Bands (£175,000 per person), a property worth in excess of £350,000 would need to be left to a direct descendent. If this is the case, the overall amount available to pass on without an Inheritance Tax Charge would be £1 million for the couple. There are other considerations such as if an estate is worth more than £2 million then the residential nil rate band is reduced by £1 for every £2 in excess. If you have assets in excess of £1 million, it can be certainly be beneficial to talk to a financial planner. Please feel free to get in touch, if you would like more information.

[@richardhughes9857]

inheritance tax my arse its called looting one wage taxed many many times, times yous were all arrested and executed for theft