michali

I am still domiciled, but not resident, in the Uk but my husband is non-domiciled. I thought 'we' would still have to pay inheritance tax on anything over, is it £350,000?

JAJ

It's not impossible to lose a U.K. domicile but in general (as a minimum) requires a permanent settlement in another country. And if you return to live in the U.K. any U.K. domicile you have previously had normally reverts (again, there are exceptions). However, there can be exceptions since Scotland and Northern Ireland are separate jurisdictions from England and Wales. The term "U.K. domicile" is generic and refers to any of the three, however they are legally distinct.

As to the rest, if you have a mix of one spouse domiciled in the U.K. and one not domiciled, the inheritance tax situation can be complex and you should take some professional tax advice on the options available. Only worth doing if your assets exceed the nil rate band, however. As far as I am aware, only 5% of estates in the U.K. are affected by Inheritance Tax.

michali

We will definitely have to consult an advisor. At the moment we are not sure where we will be living but as soon as we know, we will look into this matter. Thanks JAJ.