Domicile and Residency

[dpatel]

Have a client who is Non-resident and Non-domiciled in the UK but they own a holiday home here.

Am I correct in thinking that they have to pay IHT in the UK on that asset?

D

[Lee Young]

Yes, but only if it and ther rest of the UK based estate exceeds the nil rate band, currently £300,000.

If their joint estate is over that figure there would be IHT on the second death that could be avoided in the Wills are structured correctly.

Lee Young
Clarke Willmott Solicitors
lyoung@clarkewillmott.com

[Taxbar]

One further crucial point.

Has the client any connections with the UK and was he/she ever resident in the UK?

How many days do they spend in the UK in a UK tax year?

Are they resident in a place with a DT with the UK?

Value of UK Holiday Home?

Only be answering these questions can you be sure of no- problems and what planning to undertake.

Strategic Tax Palnning
Info@stratax.co.uk

[dpatel]

Thanks for swift response.

Client only connected to UK by holiday home valued at £1.3m

They spend about a month here per year.

Their other residences are Switzerland and Monaco.

Note: Isn't NRB for non-doms £55k?

D

[King_Maker]

"Note: Isn't NRB for non-doms £55k?" - dpatel

No - it's the inter-spouse exemption which is limited to £55,000 where the transferor is UK domiciled.