Since April 6, 2025, there have been significant changes to the UK inheritance tax regime.
Solicitors in Bangor may have noted that many of the updates have been focused on those who have international assets. It is now important to determine whether those who live their lives on a partly or fully intercontinental basis will be classed as UK residents and, as such, be obliged to pay a portion of inheritance tax on their assets located outside of this country.
Previously, property outside the UK would be excluded from inheritance tax laws, but now, the tax requirements will be based on how long someone has lived in the UK, no matter where their assets are located. From April this year, anyone who lives in the UK and has paid tax for ten years or more will need to start paying inheritance tax on their international portfolio. Even if these individuals choose to leave the country, they will still need to pay an amount based on how long they have been here.
Many solicitors are urging their multi-national clients who have a high net worth to consider alternative approaches to estate planning. Assessing length of UK residency has become an important action, along with determining residency status. The biggest impact of these changes will be felt by those who live internationally and non-domiciliaries who may have substantial assets located across the world.
Speak to us today here at Bennett Smith Solicitors and let our legal experts help you plan your estate and inheritance tax obligations.
