Avoiding inheritance tax through emigration



Avoiding inheritance tax through emigration might not be as far-fetched and extreme as it first sounds.


One couple mentioned in the press in recent days, had moved to Australia.  They were advised that if they planned to stay there permanently, they would eventually become Australian citizens – great news, as Australia does not apply inheritance tax to estates.


Generally, UK couples who emigrate are still classed as having a UK domicile within three tax years after they leave.  This means that they would still be liable for UK inheritance tax on all assets valued over the nil rate band, should they die during this time.


In addition, if any property remains theirs within the UK, this is classed as being a domicile and the above will apply.  Therefore, all ties to assets in the UK must be severed.

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