United Kingdom Inheritance Tax Seminar Recap

On the 8^th of September 2022, Melbourne Capital Group held a United Kingdom Inheritance Tax (IHT) seminar at the iconic Troika Sky Dining, overlooking the Kuala Lumpur city skyline. The seminar was a private event, with a select group of Melbourne Capital Group clients and friends attending.

Jamie Bubb-Sacklyn, a U.K. Chartered Financial Planner and Estate Planning Specialist shared insights and suggestions on how to prepare for United Kingdom IHT if you are a British expatriate, or have assets in the United Kingdom.

Below are the some of the key takeaways from the presentation:

• All United Kingdom based assets are subject to United Kingdom inheritance tax, regardless of whether or not you are domiciled in the United Kingdom.

• If you are United Kingdom domiciled, then United Kingdom inheritance tax applies to your worldwide assets. 
• It is very hard to remove your United Kingdom domicile but quite easy to acquire one. 

• Interspousal transfers between 2 United Kingdom domiciled individuals exempt from inheritance tax upon the death of the first spouse.

• If you are married to an individual without domicile in the United Kingdom, the amount that you can pass to them is generally limited to the spousal exemption of £325,000. Everything above this may be subject to inheritance tax at 40%. 

• Certain types of pensions are exempt from United Kingdom inheritance tax.

• There is technically no upper limit to the amount that can be contributed to a qualified non-U.K. pension scheme (QNUPS). 

• When you gift assets, you must survive for 7 years before the gift can fall  outside of your estate. 

• Some investments qualify for Business Relief and fall outside of your estate after 2 years, if still held on death. 

• There are many types of Trust that can be established in order to protect assets, with some giving you control and access over the funds.

• Typically, inheritance tax planning involves taking steps over a number of years, rather than being done all at once.
• It is best to have a Will for each jurisdiction that you hold assets in. 

Should you have questions about the United Kingdom inheritance tax, please feel free to contact us at wealth@melbournecapitalgroup.com , and one of our private wealth specialists will be in touch with you.

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