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Where Taxpayers and Advisers Meet

Uk Inheritance tax foreign wife

jim1980
Posts:11
Joined:Fri Nov 16, 2018 8:30 am
Re: Uk Inheritance tax foreign wife

Postby jim1980 » Fri Sep 11, 2020 7:26 am

AGoodman

Thank you for your reply
Yes I will try and keep it as simple as possible no trusts or company stuff.

Thank you again for your time and help.
Jim.

jim1980
Posts:11
Joined:Fri Nov 16, 2018 8:30 am

Re: Uk Inheritance tax foreign wife

Postby jim1980 » Fri Sep 11, 2020 7:30 am

Hi maths
Thank you for your reply
Think my dom is still in the uk, I do fill a self assessment form in for property rental every year, I think its in form SA109 there is a part about dom, and I have not stated I have changed my dom. So they probably counts in my favour as uk dom still.
Yes I did read about my wife being able to elect to be treated as uk dom for inheritance tax.
I don’t think it will ever come to that as I’m slowly spending down my pot now. but good to know there are still other options.

Thank you again for your time and help.
Jim

jim1980
Posts:11
Joined:Fri Nov 16, 2018 8:30 am

Re: Uk Inheritance tax foreign wife

Postby jim1980 » Fri Sep 11, 2020 7:33 am

Hi All
I would like to thank you all for your time and help
i feel confident now that my wife wont have any problems with IHT in the uk.
All we need to do is keep below 650,000 and all will be fine.
Thanks again for all your help
Jim.

Samson22
Posts:58
Joined:Mon Aug 17, 2020 10:54 am

Re: Uk Inheritance tax foreign wife

Postby Samson22 » Fri Sep 11, 2020 7:59 am

For your information Jim, if you go down the route of making the properties Jointly owned gift the properties to your wife and only the increase since April 2015 will be taxable.

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

Re: Uk Inheritance tax foreign wife

Postby maths » Fri Sep 11, 2020 1:34 pm

Re Samson22's last post I'm not sure it is correct.

Husband currently owns 100% of residential property (never a main/sole residence). Owned pre 6 April 2019.
A disposal by H (not to spouse) precipitates capital gain and possible to rebase to 6.4 15 [TCGA 1992 Sch 4AA Part 3].

Assume H transfers property to wife W in tax year 20/21. There is a disposal at date of the transfer (ie no back-dating date of acquisition by W) but it's at a no loss/gain ie W acquires property at original cost to H. W then sells property. Note W did not hold the property on 6.4.19.

Is it not then the case that W cannot benefit from any re-basing either to 6.4.15 or 6.4.19? [TCGA 1992 s 58(2)].


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