Non UK domiciled people living in the UK look set to have a tax loophole closed by the Chancellor. There are special inheritance tax rules for people who live in the UK but were either born overseas or their parents were born overseas or they have not lived in the UK for 15 years plus.
For UK domiciles that move overseas it is normally 17 out of the last 20 years overseas to move change domicile to outside the UK. In his budget in April 2002 and looking at his budget speech in November 2002, the Chancellor plans to close a loophole where "non-UK domiciles" can invest their money in offshore assets and avoid UK Inheritance Tax.
We, along with many advisers, are sitting tight and awaiting any announcement either shortly or in the next budget.
Our View:
If you are UK resident but not domiciled in the UK, you really need to take action now and ensure that you take advantage of UK tax rules. In our experience, much legislation of this nature is very rarely retrospective. Act now or it could be costly.
Why not try our Ask An Adviser service and get some help?
Visit the Inheritance Adviser.com to learn more about this tax.