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Where Taxpayers and Advisers Meet

Inheritance Tax Wife

NonDom41
Posts: 42
Joined: Tue Nov 28, 2017 3:03 pm

Inheritance Tax Wife

Postby NonDom41 » Wed Aug 07, 2019 2:20 pm

I am considered domiciled in the UK (previously a NonDom but now resident in the UK for more than 15 years).

If I die and give all my assets in my last will to my wife she will inherit all my assets UK-tax-free; no matter the value. All assets lie outside the UK and have been outside before we moved to the UK. My wife is also domiciled in the UK but was born in Brazil (carries both the German and Brazilian citizenship).

Am I right ?

pawncob
Posts: 4352
Joined: Wed Aug 06, 2008 4:06 pm
Location: West Sussex

Re: Inheritance Tax Wife

Postby pawncob » Wed Aug 07, 2019 3:36 pm

If the UK is your domicile of choice and you're both resident in the UK for tax purposes, then all gifts/bequests to your spouse are tax exempt. There may be liabilities in other countries.
With a pinch of salt take what I say, but don't exceed your RDA

NonDom41
Posts: 42
Joined: Tue Nov 28, 2017 3:03 pm

Re: Inheritance Tax Wife

Postby NonDom41 » Wed Aug 07, 2019 9:05 pm

Thank you.

That means, I can give assets to my wife UK-tax-free regardless of the total value ? There is no threshold ?

I have read somewhere that there is a difference if the wife was not born in the UK.

Can you answer these two questions ?

pawncob
Posts: 4352
Joined: Wed Aug 06, 2008 4:06 pm
Location: West Sussex

Re: Inheritance Tax Wife

Postby pawncob » Thu Aug 08, 2019 10:59 am

Yes.
If she's UK resident/domiciled it doesn't matter where she was born.
With a pinch of salt take what I say, but don't exceed your RDA

NonDom41
Posts: 42
Joined: Tue Nov 28, 2017 3:03 pm

Re: Inheritance Tax Wife

Postby NonDom41 » Sun Aug 18, 2019 3:56 pm

Does that mean the wife of a UK-resident/domiciled inherits all assets (local and worldwide) of her husband 100% UK-tax-free automatically even if there is no Last Will existing ? Or is the existence of a Last Will required that indicates the wife as the sole heir ?

darthblingbling
Posts: 268
Joined: Wed Aug 02, 2017 9:09 pm

Re: Inheritance Tax Wife

Postby darthblingbling » Sun Aug 18, 2019 4:20 pm

In the absence of a will I believe under the rules of intestacy it will pass to your wife

pawncob
Posts: 4352
Joined: Wed Aug 06, 2008 4:06 pm
Location: West Sussex

Re: Inheritance Tax Wife

Postby pawncob » Sun Aug 18, 2019 5:15 pm

Intestacy rules include children and other family members.
https://www.gov.uk/inherits-someone-dies-without-will
With a pinch of salt take what I say, but don't exceed your RDA

AGoodman
Posts: 857
Joined: Fri May 16, 2014 3:47 pm

Re: Inheritance Tax Wife

Postby AGoodman » Mon Aug 19, 2019 11:28 am

Yes, children have an interest in an intestate estate over £250k

The rules of succession and tax will often be entirely different for assets in other countries. Most of the continent will give children a fixed share irrespective of what a will says.


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