Tax Question:

After reading the most recent book for non residents I have the following question

If a non resident owned UK property in his/her personal name would he be subject to UK IHT ? Would the answer be different he held cash or an insurance policy only?would there be a difference if he held the property through an. Offshore company?

Answer:

Just because an individual was non resident this would not take them outside the scope of UK inheritance tax ('IHT'). It is their domicile position that is of key importance. Therefore if they were non UK resident but UK domiciled they would be subject to UK IHT on their worldwide estate. As such cash, property, insurance, shares in an offshore company etc would all be within their UK estate.

If they were non UK domiciled then only UK assets would be subject to UK IHT. As such any property held via an offshore company would not be subject to UK IHT.

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