Inheritance Tax from Offshore Estate

canoehorse

Hi,

Is UK inheritance tax applicable from an estate that is offshore. A relative who lived in Guernsey has passed away and left me money in the will. I am a resident of UK but my domicile of origin is Guernsey.

Is it correct that any inheritance tax is applied to the estate based on the domicile and residence of the person who has passed away, rather than the location of the beneficiaries. Also, all the assets were Guernsey based.

I know that income tax on interest between death and distribution is liable.

Thanks for your help.

yelf

IHT is based on the reduction in value of the donor. So your domicile is irrelevant. IHT is paybale on al worldwide assets for UK domiciles, and only UK assets for non-UK domiciles.