Q&As

What are the inheritance tax rules concerning lifetime and testamentary gifts between UK and non-UK domiciled individuals?

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Published on LexisPSL on 06/07/2018

The following Private Client Q&A provides comprehensive and up to date legal information covering:

  • What are the inheritance tax rules concerning lifetime and testamentary gifts between UK and non-UK domiciled individuals?
  • Transfers between spouses

The main point to appreciate is that the nil rate band (NRB) and the spousal exemption are two completely separate provisions of the inheritance tax (IHT) code. The NRB is a deduction from an individual’s estate which will have the effect of reducing the amount of the estate liable to IHT, whereas the spousal exemption provides a total exemption from IHT.

The NRB is not restricted to UK domiciled persons. The legislation does not contain an express statement that the NRB applies to non-UK domiciled persons. Rather, it is the absence of any restriction that means it is available to both UK and non-UK domi

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