travellerva

I am non-resident and non-domiciled in the UK (British citizen living in the USA) but own a UK property valued at £420,000. Do I have UK estate tax liability on my death?

cyrian

Google came up with this:
"Normally, IHT is charged to non-UK residents only on the properties located in the UK. However, there are some cases where Non-residents are chargeable to IHT even in the abroad assets. This applies when you are non-UK resident but UK domiciled. A person is a UK domiciled when s/he is likely to settle permanently in the UK."
You should still benefit from the current £325k exemption for a single owner or £650k for a couple.
Assuming a sole owner, the tax would be £420k - £325k = £95k @ 40% = £38k

Read this article:
Inheritance tax for non-residents

HTH

travellerva

Thanks for the reply and reference, cyrian. I had forgotten to mention that my UK property is titled in the name of an offshore (US-based) Trust. Does this mean the property does not fall within my personal estate and would thus avoid probate and the IHT tax above the £325K threshold?

durham_lad

I would seek advice from a professional on this.

Also, you are asking this question in the UK forum, but you live in the USA. Maybe if you posed the question in the USA forum you may find someone in a similar situation. Since you live in the USA then you are almost certainly classed as a "US Person" so that forum may also have US persons that hold offshore trusts.

cyrian

I agree with durham lad that you would be better getting professional advice.
If the Trust disposes of the property then it will have to pay tax on the gain and the £325k exemption is for individuals and not companies and Trusts.