Robbie500

This may shock a few people. You may have lived in Canada for many years and you may have a Canandian passport but also have kept you UK passport. Unfortunately something happens and you pass away. Believe it or not your family that are benificiary's of your will and are liable for capital gains tax they may have to pay it. It is all to do with your domicile. It means you can live somewhere else but because, in this case you did not give up your British Passport; there was always possibilty you may return to he UK and are therefore maybe liable for tax on our estate.

It is complicated but take a look at the UK revenue link below. You do not want to get caught out.


://www.hmrc.gov.uk/CTO/customerguide/page20.htm

Biiiiink

Thanks for the link.

Have I read it right - it's a non-issue if you live longer than 3yrs after emigrating? (no real assets in the UK)

bazzz

That's how I understand it. Sounds fair enough. Personally I'd like to see inheritance tax being made more severe, but then I can be a bit of a commie bastard at times.

R I C H

Why?

Biiiiink

Yep, otherwise everyone would move abroad in anticipation of the end 3yrs seems a generously short timeframe since you have to survive 7yrs to gift things IHT-free in the UK I think.

bazzz

Redistribution of wealth, innit. My plan is to die with as much debt as possible and to have a great deal of fun in piling it up.

AmyDavid

LOL I like your style!!

R I C H

To the government, to do as they please with it?

You've most likely paid tax while earning it through your lifetime, so why should the government tax you again on your success?

bazzz

I've seen little to convince me that the people who end up with the most money in any way deserve it. I'm certainly not one of them. I trust the government to do something useful with it more than the people who want to give it to their spoilt kids.

Inse

The same thoughts as ourselves Bazzz. We've told the kids that there won't be much left by the time we're done. We intend to grow old disgracefully and to enjoy our time.
I was told that the best way to be remembered is to die owing everyone money, you'll be talked of for evermore!

R I C H

Cast another line bazzz, I won't bite on a hook-full of bollocks.

bazzz

Obviously you care about this sort of thing - you've got a shitload of money. You can't expect those of us who don't to feel sympathy for the likes of you though.

Robbie500

Having spoken to my friend who deals in these financial matters. You will always have to pay inheritance tax on your Canadian estate if you do not give up your UK passport forever. If you still have it the UK revenue will assume you may return sometime and deem younliable for inheritance tax..

JAJ

No, this is complete nonsense and scaremongering.

Reality is that if your assets are and your will is probated in Canada, then the U.K. Revenue won't even know about your estate.

And even if they did know, they have no legal authority to tax a Canadian estate.

If you leave assets behind in the U.K. then it's a different story, but these are always liable to U.K. Inheritance Tax even if the person is not a British citizen.

dingbat

Your friend may wish to re-train. If I die in Canada, with assets in a Canadian province, my will is probated in my province of residence at the time of my death, or the province where the will is lodged and I am ordinarily resident. UK tax authorities have no say and will not even be notified.