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Where Taxpayers and Advisers Meet

Spousal Exemption for non-doms

DtheRed
Posts:20
Joined:Thu Oct 05, 2017 5:35 pm
Spousal Exemption for non-doms

Postby DtheRed » Tue Feb 08, 2022 12:22 pm

Morning,

Quick questions for which I hope are simple answers. My Mum and dad are both now non-doms (and non residents) for over 7 years having retired overseas. But their more valuable assets (house and cash) are mostly in the UK. My questions are:

1. In terms of IHT, do they still benefit from the Nil Rate Band of £325,000 each?
2. If one passes before the other, can they still automatically transfer their estate to the spouse tax free or is there a limit for non-doms? (I have seen lots of advice for UK-Dom to non-UK domicile being capped at £325,000 but nothing for non-UK Dom to non-UK dom).
3. Can they still elect main UK residence if their house here has never been rented out?

Cheers

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

Re: Spousal Exemption for non-doms

Postby maths » Tue Feb 08, 2022 3:24 pm

1. Yes

2. Totally UK tax free; no limit applies.

3. Probably not. If, as seems likely, they acquired a residence overseas in which they live it is unlikely the UK property will continue to be a residence and even if it has remained a residence they would have had a two year cut off to make any election in favour of the UK residence.

DtheRed
Posts:20
Joined:Thu Oct 05, 2017 5:35 pm

Re: Spousal Exemption for non-doms

Postby DtheRed » Thu Feb 10, 2022 4:43 pm

Thanks maths!


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