Is IHT payable to a child domiciled in europe?

[StuartR]

Parents live in the UK and child domiciled in the EU.

If parents transfer funds to child in EU are they exempt from the gifting limits?

In other words does IHT apply when funds are sent to individuals that are non UK recipients?

[AGoodman]

UK IHT is based on the domicile of the donor so the residence/domicile of the recipient is irrelevant.

If the parents are UK domiciled (nb there is a big difference between domicile and residence), the gift would be a potentially exempt transfer.

Also - many EU countries such as Germany tax a recipient of gifts so you also need to consider the local taxes.