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UK Inheritance Tax

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[Received on my Facebook page.  Some may have seen this info, some may not.  Advertising, so view with circumspection!]

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The rules have changed.  You might now be liable on your worldwide assets - even if you live overseas.

Under the new rules, individuals who have been UK tax resident for 10 of the past 20 years are now classified as Long Term Residents (LTR).  Once you meet this threshold, your entire global estate could be exposed to UK Inheritance Tax - regardless of where you currently live or what nationality you hold.

This shift has serious implications for those with:

UK pensions or property
Investments or trusts held abroad
Dual tax residency or historic UK ties
Long periods of UK residency, even in the distant past

And from 6 April 2027, unused UK pension funds may also be added to the value of your estate on death - making your liability even higher.

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After filling in an online questionnaire stating my total estate comes to less than the threshold, and that I have not been resident in the UK within the past 20 years, but receive a (less than full) DWP pension, they estimated I have a 37% chance of falling with the ambit of this new tax law.

FYI

 

I can confirm the pension change but I think it starts in 2026.  It will cost me a ridiculous amount of money. I hope I'm wrong re the start date. 

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This will be a major deterrent to illegal migrants, knowing that in 10 years their assets in Afghanistan, Sudan, Syria and Eritrea will be subject to UK inheritance tax. :coffee1:

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