4 months ago

The rule change that means you CAN avoid inheritance tax: Here's everything you need to know about the new loophole that's opening up - and whether it's right for you

No matter how much you hate inheritance tax or believe it to be unfair, there is little you can do to protect your loved ones from paying it on significant assets you pass down to them. Hundreds of thousands of Britons already abroad may now find themselves exempt from paying UK inheritance tax without realising it – as this little-known loophole has largely gone under the radar. The change to inheritance tax is part of the fallout from the abolition of so-called non-domiciled status that was confirmed in the Autumn Budget by Chancellor Rachel Reeves Wealth management group Evelyn's partner and tax expert Ian Dyall says that unless people sell up completely and dispose of all their British property and investments before retiring abroad, they will still have to pay IHT, even if they do not return to the UK. Chris Etherington, a partner at accountancy firm RSM International, says: 'Remember, just because you won't be paying UK inheritance tax does not mean you avoid paying death taxes in the country where you live.' Chris Etherington, a partner at accountancy firm RSM International, says: 'Just because you won't be paying UK inheritance tax does not mean you avoid paying death taxes in the country where you live' Robert Salter, a tax director at accountancy and business adviser Blick Rothenberg, says: 'Remember, if you live in Britain at any point and become UK tax resident in that tax year per our domestic law you will break the rule – and the clock starts again.'

Daily Mail

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