, last updated - UK Inheritance Tax

Expat Inheritance Tax

expat inheritance tax

As an expatriate have you considered the Inheritance tax liabilities from your estate that will be left to the beneficiaries? Do you need to look at ways to reduce this and have effective control over the tax liabilities?

Many expats now living abroad, still find themselves as UK domicile on the event of death. What does this mean? Any assets worldwide will be considered as part of the estate on death.

Currently, the Inheritance tax threshold in the UK is £325,000 and due to reduce. For married couples, this is £650,000. Tax liabilities over this threshold from 36 to 40%.

Effective estate planning can reduce the overall Inheritance tax liability on your estate. You can even have this to your advantage and plan for the tax liability. By doing so, you are leaving the intended estate to your beneficiaries.

Expat Estate Planning

Firstly, we need to consider your domicile status. Have you registered as living outside the UK for tax purposes? Have you considered the inheritance tax within your country of residence?

Harrison Brook can assist you with changing the domicile status and further provide advice on the inheritance tax within your domiciled country.

Ultimately the UK tax authorities will determine as to your liability within the UK. There are a lot of things to consider and advice should always be taken in advance of estate planning, closure of bank accounts, setting up trusts for life assurance pay-outs, payment of gifts (one-off or regular) and transferring your pension pot can help you avoid inheritance tax.

Expats in Spain for example

Expat Inheritance tax for residence domiciled in Spain. If you an expat and you have registered as resident in Spain, you are liable to all worldwide assets dependant on location and age. Inheritance tax liabilities up to 29.75% depending on the value of your estate.

If you consider the 29.75% within Spain for example, this can be reduced and you can set aside preventions for the tax liability.

Request a consultation

Advice should always be taken when considering your family estate and the assets within it. This is a very important part of financial planning and should not be overlooked.

How we can help, Harrison Brook will consider all your current assets, your domicile status, assist with financial planning and advice you according to the most suitable options available.

Speak to an advisor today and arrange a no-obligation consultation.

The information contained herein is for informational purposes only which is subject to change and should not be relied upon. You should seek advice from a professional adviser before embarking on any financial planning activity.

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