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Old 03.09.2010, 16:31
Posts: n/a
Re: UK IHT/Swiss resident/UK domicile

No it won't work if you're hoping to get assets transferred free of IHT from you to your kids via a foreign domiciled husband. As the rules currently stand, transfers to foreign domiciled spouses do not get the full exemption from inheritance tax that transfers to a UK domiciled spouse would. Exempt transfers to foreign domiciled spouses are capped at 55,000. Therefore anything over the normal nil rate band plus 55,000 will be taxed.

By the way, chidren don't pay IHT when they benefit under a will. The deceased person's estate pays the tax before the transfer to the kids is made. Trustees/administrators/personal representatives are personally accountable to the Inland Revenue for deducting the tax, which is why they should take their responsibilities seriously.

Have you considered taking steps to lose your UK domicile. If you plan to live abroad permanently you can do this but it takes time and it means severing all links to the UK, though you can keep your UK citizenship.

I'm with Telandy. Seek professional advice.
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