UK IHT Overseas Lose UK Domicile
You are UK Domicile of Origin if you were born in the UK to a UK Domiciled father.
You are UK Domicile of Choice if you have moved to the UK from overseas and have been living in the UK for at least 17 out of the last 20 years.
This means you are subject to UK Inheritance Tax on your Worldwide assets. See our full explanation of domicile in the business and tax zone.
Losing UK Domicile of Origin Status
It is possible to lose your UK Domicile of Origin Status if you move overseas. You can acquire a domicile of choice broadly speaking by moving overseas with the intention to live there permanently and sever ties with the United Kingdom. This would mean that you may not be subject to UK inheritance tax on Worldwide assets but only on UK assets
This is easier to disprove than prove. Things that demonstrate a change in domicile:
Losing a Domicile of Choice Status
Quite simply, if you move from one country to another, even if you still stay outside the UK, you automatically lose your Domicile of Choice and are back to your Domicile of Origin (at birth) again. This means:
For more help on how to lose UK domicile and plan for tax, contact us.