Double Tax Relief (Estate Duty) (India) Order 1956

[sirp2000]

I am writing to enquire if any of you have experience in claiming relief under the above treaty.

This applies to people who are domiciled in India even if the are deemed domiciled in the UK. On death, any property situate outside Great Britain and not governed by a UK will will be exempt from IHT.

My question relates to the definition of domicile in this treaty. The Indian concept of domicile apparently is very different from the UK concept. My client is certainly domiciled in India under the UK concept, but may not be domiciled in any Indian state under the Indian concept.

I would like to be certain that the exemption will apply in my client's case but I have no experience of claiming relief under this treaty.

I would be very grateful to hear from anyone with experience in this matter.

Many thanks.

[maths]

My client is certainly domiciled in India under the UK concept,

If this is correct (ie the client is not UK domiciled), then irrespective of whether your client is domiciled in India under Indian law, there is no UK IHT on non-UK situs assets ?

[sirp2000]

Thanks maths.

My client is not UK domiciled but he IS UK deemed domicile so he would normally be liable to IHT on worlwide assets - this obscure estate duty treaty with India should exempt his overseas assets as long as all the boxes are ticked.

[maths]

Given your client is deemed UK domiciled under UK domestic law (and thus exposed to UK IHT on worldwide assets) but non-UK domiciled under UK common law then his exposure to UK IHT on non-UK situs assets is removed under the DTA only if he is domiciled in India under their domestic law.