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Where Taxpayers and Advisers Meet

Non-dom, Non UK resident - PET's

jacbjacb
Posts:3
Joined:Tue Apr 24, 2018 9:07 pm
Non-dom, Non UK resident - PET's

Postby jacbjacb » Tue Apr 24, 2018 9:18 pm

I am a British Citizen who moved to New Zealand over 7 years ago

My UK status, is Non-Dom, Non resident.

My mother passed away in Aug 2017 having given me some financial gifts in the previous seven years.

She was UK resident and was UK Domiciled.

I cant see why I would be expected to pay UK IHT for a PET when I am Non-Dom, non resident.

Can anybody advise?

AdamS93
Posts:268
Joined:Tue Sep 26, 2017 6:28 pm

Re: Non-dom, Non UK resident - PET's

Postby AdamS93 » Wed Apr 25, 2018 11:25 am

You would pay IHT on any failed PETs.

This is because when considering IHT you look the the domicile of the 'transferor' (your mother) and not the recipient (yourself).

maths
Posts:8507
Joined:Wed Aug 06, 2008 3:25 pm

Re: Non-dom, Non UK resident - PET's

Postby maths » Wed Apr 25, 2018 8:55 pm

A gift between individuals is a PET. If the transferor dies within 7 years of making the gift an exposure to IHT arises. Whether an actual charge arises will depend upon the history of gifts the transferor has previously made. Thus it may be that the PET (if death within 7 years) falls within the transferor's nil rate band in which case no actual IHT charge arises.

If an actual charge does arise the primary liability to discharge the IHT is that of the donee (i.e. you).

As you live overseas collection by HMRC may prove difficult and should they fail they may turn to collect the tax due from the executors of the transferor's estate.

The charge arises because IHT is due on worldwide lifetime gifts and on death where the transferor is domiciled or deemed domiciled in the UK (irrespective of residence). Your status as donee is irrelevant.


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