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Where Taxpayers and Advisers Meet

Non-domicile parents and sibling

matohak
Posts:1
Joined:Sat Mar 25, 2017 5:10 pm
Non-domicile parents and sibling

Postby matohak » Sat Mar 25, 2017 5:24 pm

I have a close friend whose whole family holds British Citizen passport.
My friend lives in the UK but the rest of her family (parents and a brother) has lived overseas all their lives.

Under such condition, I wonder how would inheritance tax be calculated?

Since her parents and brother has lived overseas all their lives, it seems to be clear that her brother won't be taxed over the parents' estate.

Will IHT only be applicable over the portion of the estate that is due to be split to UK domicile beneficiaries?
What happens if she declines her parents' inheritance such that her brother receives all the inheritance?

RMC
Posts:435
Joined:Wed Aug 06, 2008 3:35 pm

Re: Non-domicile parents and sibling

Postby RMC » Sun Mar 26, 2017 3:55 pm

Your UK-resident friend will not be liable to IHT if she inherits on her parents’ deaths. IHT is paid only by the estate of the deceased, not by beneficiaries.
It may however be a good idea to give up inheritance if requested by in a better position to care for the estate.


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