My query relates to my mother. We are questioning whether she is deemed UK domiciled or not due to a sad change in circumstances.
My mum has been living in the Czech Republic since August 2003 when she retired at 60.
She has a Czech permit, permitting her to reside in CZ Rep as an EU citizen.
She has a British passport.
She has a signed S1 for reciprocal healthcare.
She owns an apartment in the Czech Republic. No property in the U.K. although she does retain her UK bank account for all her finances.
I am her only family tie. I am a UK resident.
My mum came over mid December 2016 for Christmas and the New Year but unfortunately became seriously unwell and was admitted to hospital and unable to return home as planned on 5 Jan 2017. She has been in and out of hospital and now requires treatment for an aggressive tumour; she would not be well enough to go home alone at present. Her intention as to whether to stay in the U.K. or not will depend on her treatment outcome. She is currently staying with my partner and me during her treatment.
We assess that up until this unexpected stay she was not a UK resident/UK domiciled. She does visit for holidays but less than 90 days per year.
Her apartment was purchased in 2006 at a U.K. equivalent of £30,000. It has not increased in value much beyond that, the main gain currently would be due to stronger CZ crown against sterling.
She is thinking she will either sell , or gift the apartment to me as she possibly thinks she will be staying with us and would not be able to afford living anywhere else.
Questions:
1. Would she now be deemed UK resident / domiciled in view of her time here, or would the current situation be deemed exceptional circumstances?
2. If she remains non U.K. Domiciled what are the implications of gifting her apartment to me?
3. If she is UK domiciled, again what are the implications of gifting her apartment to me. We assess that if she were not to survive 7 years the gift would go into her estate for IHT purposes, or would there be tax regardless of her estate value.
4. We need advise on whether we need a U.K. Will or a will drawn up in the Czech Republic, who would be best to advise on this?
We are happy to take official advise but would need guidance on the type of the tax advisor or solicitor we might require.
Your expertise is appreciated. Thank you.
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