ÀÏ˾»úÎçÒ¹¸£Àû

Residence-based IHT system from 6 April 2025


Produced by a Tolley Trusts and Inheritance Tax expert
Trusts and Inheritance Tax
Guidance
tag-icon Autumn Budget 2024

Residence-based IHT system from 6 April 2025


Produced by a Tolley Trusts and Inheritance Tax expert
Trusts and Inheritance Tax
Guidance
tag-icon Autumn Budget 2024
imgtext

This guidance note explains the changes expected to the inheritance tax system in the UK from a domicile based system prior to 6 April 2025 to a residence-based IHT system for events on and after this date.

Current position

The current position is as set out in the Domicile for UK inheritance tax guidance note.

New rules

The new rules will apply from 6 April 2025 and draft legislation has been released. As would be expected for such a fundamental change, this is a very long piece of draft legislation at 103 pages. HMRC have also published Technical Note: Reforming the taxation of non-UK domiciled individuals which contains useful detail and case studies.

In addition, the remittance basis of taxation will be abolished and replaced with a time-limited foreign income and gains (FIG) regime. See the Abolition of the remittance basis from 2025/26 guidance note for further details.

Domicile will still exist as a common law concept but will have no impact on the inheritance tax position.

Long

Continue reading
To read the full Guidance note, register for a free trial of Tolley+â„¢
TAKE A FREE TRIAL
Powered by
  • 15 Nov 2024 07:34

Home/ Tolley Tax Guidance/ Trusts and Inheritance Tax / Advising on offshore matters

Popular Articles

Trusts and Inheritance Tax

Gifts out of surplus income

Gifts out of surplus incomeA valuable exemption from inheritance tax (IHT) applies to gifts out of surplus income. This exemption applies only to lifetime gifts and is therefore a key part of lifetime planning. The exemption applies to both outright gifts and gifts into trust. Gifts which meet the

14 Jul 2020 11:48 | Produced by Tolley in association with Emma Haley at Boodle Hatfield LLP Read more Read more
Trusts and Inheritance Tax

Gifts with reservation ― overview

Gifts with reservation ― overviewIntroductionA gift with reservation (GWR) arises when an individual ostensibly makes a gift of his property to another person but retains for himself some or all of the benefit of owning the property. The legislation defines a gift with reservation with reference to

14 Jul 2020 11:48 | Produced by Tolley Read more Read more
Trusts and Inheritance Tax

Corrections and amendments to the IHT account

Corrections and amendments to the IHT accountThis guidance note explains how to deal with changes to the taxable values in the original inheritance tax account.Why do amendments arise?When the IHT account is first submitted to HMRC, it is based on information available at an early stage of the

14 Jul 2020 11:20 | Produced by Tolley Read more Read more