Inheritance Tax liability could be greater and due sooner if your spouse is not a British National!
So you are married or in a civil partnership. You can give your spouse all your assets and have no worries as far as IHT is concerned, right?
Unfortunately for those who have married someone who has a domicile outside the UK, no!
The amount that a UK domiciled person can pass to a non UK domiciled person is limited to the IHT free limit (nil rate band -£325,000). The spouse can elect to remove this restriction and be treated as UK domiciled for IHT. This will however bring the spouses worldwide assets into the IHT net.
This means that if your spouse was “for example” born outside the UK and has not changed their “Nationality” also known as “Domicile” then you can choose to pay IHT on the wealth you pass to them above the current £325k limit, or, they can become a British national and transfers on death to them will be free of IHT, BUT, if they have wealth outside the UK, it will be liable to UK IHT, on their death with a proviso that they are still a British National.
That’s clear then???
Call me to let me help you through this minefield and potentially save ££££££
Call Mark on 0845 8622 789