Foreign gift and estate tax—summary
Produced in partnership with Rebecca Fisher and Andrew Godfrey of Russell-Cooke Solicitors
Foreign gift and estate tax—summary

The following Private Client guidance note Produced in partnership with Rebecca Fisher and Andrew Godfrey of Russell-Cooke Solicitors provides comprehensive and up to date legal information covering:

  • Foreign gift and estate tax—summary
  • Conflict of laws and tax
  • Mismatches of classification for taxation
  • Domicile
  • The impact of succession law
  • Spouse exemptions

Conflict of laws and tax

The fact that different states may use common law domicile, deemed domicile, applicable law, civil law domicile, tax residence, habitual residence, nationality or situs of either the donor (or the deceased) on the one hand or the donee (or heir or beneficiary) on the other, means that some assets are not taxed at all, while some assets are taxed twice or multiple times. For example:

  1. the UK taxes all UK-situs assets (irrespective of residence and domicile) and the worldwide assets of someone dying domiciled or deemed domiciled in the UK—see Practice Note: IHT—the charge on death

  2. Ireland taxes Irish-situs assets and the worldwide assets of someone dying Irish resident or ordinarily resident because they die within three years of being resident in Ireland and the worldwide assets received by an Irish resident beneficiary or a beneficiary ordinarily resident in Ireland because they have been resident within three years. (Non-domiciles must be resident for five consecutive years in Ireland before they become liable)

  3. the US taxes US situs-assets and the worldwide assets of someone dying a US national or resident such as a green card holder—see Practice Note: UK-US estate planning—introduction

  4. France taxes French assets and those of someone dying resident in France and in some cases taxes beneficiaries resident in France—see Practice Note: UK-France