UK Domicile and IHT

mania112

I'm born and raised in the UK, having never left the country.

How long do I need to be domiciled in another country to 'remove' the UK as my domicile (with a view to removing any IHT liability in the UK)?

Presumably I would also have to sell any assets in the UK too?

shaun_from_Africa

You really need to speak to a qualified tax adviser as there are many different criteria for determining your residency and domicile status for tax puposes.

The determing factors are basically the amount of time spent in the UK, whether you have a residence available to you and your employment status.
For HMRC to accept you as being non resident, you should be out of the UK for at least 3 years, but simply leaving isn't enough. You may be asked to show that you have no intention of returning in the near future.

A tax adviser will probably cost you a couple of hundred pounds, but as you are thinking of leaving to save on IHT, you must be expecting a largish sum of money, so this will be a small price to pay for good advice.

sleepless_saver

Chapter on domicile in HMRC guidance

badger09

sleepless_saver wrote: »

Chapter on domicile in HMRC guidance

Unfortunately, that Guide doesn't cover IHT. It does however give an idea of just how complex Domicile is

mania112 wrote: »

I'm born and raised in the UK, having never left the country.

How long do I need to be domiciled in another country to 'remove' the UK as my domicile (with a view to removing any IHT liability in the UK)?

Presumably I would also have to sell any assets in the UK too?

Have a look at this, which does cover IHT.

http://www.hmrc.gov.uk/cto/customerguide/page20.htm#4

In our very complicated tax regime, this is probably one of the most complex areas of personal taxation (speaking as retired Tax Inspector :eek:)

Unless you are very wealthy - in which case you can afford to (and cannot afford not to :cool:) seek proper professional advice - my considered opinion would be forget it, and look at other ways to mitigate your liability to IHT.

grey_gym_sock

badger09 wrote: »

and look at other ways to mitigate your liability to IHT.

my favourite is: give money away, and then live for at least 7 years

badger09

grey_gym_sock wrote: »

my favourite is: give money away, and then live for at least 7 years

Happy to be a recipient - shall I PM you my bank sort code and account details? Or I could publish them on here so everyone could benefit :rotfl::rotfl:

grey_gym_sock

badger09 wrote: »

Happy to be a recipient - shall I PM you my bank sort code and account details? Or I could publish them on here so everyone could benefit :rotfl::rotfl:

oh, i meant when i'm the recipient. sorry for the misunderstanding

badger09

grey_gym_sock wrote: »

oh, i meant when i'm the recipient. sorry for the misunderstanding

Please try to be clear when you post :mad: