Inheritance tax obligations for beneficiaries born abroad

VivienneC · 20 January 2020 at 4:41PM

I am executor of a will in which the sole beneficiary is a spouse who has been domiciled in England since 1975, but was born overseas.

I have read many pages of guidance about IHT and cannot find out if the beneficiary will be exempted from this tax.

I have spoken to three different people on the probate helpline. None of them could give me a clear answer, and advise which of the many IHT forms to complete.

Please help if you can.

GDB2222 · 20 January 2020 at 4:43PM

Is the spouse resident and ordinarily resident in the UK?

Keep_pedalling · 20 January 2020 at 5:27PM

https://www.clarkewillmott.com/news/domicile-and-the-inheritance-tax-spouse-exemption-a-tax-relief-increase/

According to the above if is not UK domiciled the exemption should apply to an estate up to £1M, if it’s above that she could elect to be treated as UK domiciled for IHT purposes as long as that is done within 2 years of his death.

Her place of birth is irrelevant if she has become a UK citizen since moving here.

VivienneC · 28 January 2020 at 2:01PM

Thank you for replying.
The spouse has lived in England for the last 45 years, and the deceased was born and lived in England her whole life.

Keep_pedalling · 28 January 2020 at 3:11PM

VivienneC wrote: »

Thank you for replying.
The spouse has lived in England for the last 45 years, and the deceased was born and lived in England her whole life.

Did she take U.K. citizenship, and how big is the estate?

Inheritance tax obligations for beneficiaries born abroad

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