IHT Living Abroad

nalayak

Hi 
I've given £120k
to each of my 4 children.  2 live in the UK, 1 in the US and 1 in Australia. 1. Do the latter 2 have to pay IHT?
2. Do all fall in my estate no matter where they live? I'm aware of the £315k allowance and 7 year taper rule.

sammyjammy

They don't pay it your estate does.  If you are in the UK then UK rules apply to all of your estate.

Keep_pedalling

Any IHT will be paid by your estate, but if you have given so much away that it has insufficient assets to pay the bill then HMRC can pursue the reprints of the gifts and for ease that is likely to be those that live in the UK. Your NRB is £325 not £315 and yes the 7 year rule applies. TR applies the amount above you NRB only.

This seems unlikely for total gifts of £480k as the highest IHT liability that could result in is £58k. That would require your estate to have no RNRB or transferable NRB to claim and you would have had to have made yourself a pauper. 

So, please provide more detail. What is your marital status?  How much of the net worth have you retained? Do you own your home?