UK Inheritance - proof needed?

43 posts in this topic

I do recall my IFA (Independent Financial Adviser) in the UK warning about UK inheritance tax even though I resided in DE & have done so for a long time.


Its the question of HMRC deciding whether one had "Domicile" in the UK in which case the UK will take world-wide assets into account for inheritance tax.

His worry was that HMRC base their decision not much on where one is registered (i.e. in DE) but on your "ties" to the UK.

Owning property in the UK (even when rented out) is a bad sign, but also investments / savings / bank accounts can count against you.

Maybe even reciving a UK pension.


The trouble is, that HMRC will apparently not tell you in advance how they will decide.


In my case I never owned property in the UK & no longer have any funds there.  I do draw a UK pension (well two actually).



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Drawing a UK pension or benefits or owning a property in the UK does not automatically mean you will be considered domiciled in the UK. Particularly if the property is let or is used by family members. If you've been out of the UK for years, haven't sojourned for at least a couple of months in the last few years and have no other ties with the UK it's highly unlikely that you have UK domicile. 

It would be difficult in some cases even to prove where you have been and when i.e. the UK tax office will find it hard to prove you've spent a certain number of nights in the UK in any given period. One could have dual citizenship and enter and exit the UK on the non-British passport which the tax office probably don't even know you have - not that I think they go as far as checking such records unless it is for cases of millionnaires trying to avoid tax.


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