September 22, 2022

United Kingdom Inheritance Tax Seminar Recap

United Kingdom Inheritance Tax Seminar Recap

On the 8th 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.

Jamie Bubb-Sacklyn at Melbourne Capital Group Inheritance Tax Seminar, Cantaloupe Troika Kuala Lumpur
Melbourne Capital Group United Kingdom Inheritance Tax Seminar at Cantaloupe, Troika Kuala Lumpur

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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