Hi everyone,

Very confused

Me and the husband moved out here (Lagos) 8 years ago and have been told that even though we are not UK residents we would still be liable to pay Inheritance tax to the Inland Revenue upon our demise (I'll live for ever anyway ) because we are UK domiciled....

I was hoping someone could tell me how on earth will those vultures at the Inland revenue know what happens to us here???????

Yours befafled,

Miss Guest

P.S I wish we had a forum like this in Lagos

True Miss Guest, I regret. UK Inheritance Tax is based on domicile and not residency and thus unless you have lost the domicile you were born with then you can, in theory, be liable to UK IHT on your worldwide assets when you die - even if you have lived here 38 years!

It is possible to lose (or change) your UK domicile and that can be a very valuable tax planning move especially if you are worth a few bob! The problem is that the Inland Revenue will not simply tell you whether they regard you as domiciled or not, you have to force them to give their opinion by doing something that would give you a tax liability now.

It gets a bit complicated from this point but if you pm me your e.mail address I will explain further.

How will the UK Inland Revenue know what happens to you here? Well they may not but with ever increasing exchange of information it may be a chance not worth taking?

TAX THREAT TO HOLIDAY HOMES ABROAD
Britons with holiday homes abroad may face a new tax, even if they do not rent out or visit their properties, says the Financial Times.
Many people with holiday homes in Europe own the properties through a company set up to avoid local inheritance and tax laws.
But recent court decisions mean owners could be regarded as receiving benefits in kind from the company.
This means they could be taxed accordingly.
The Inland Revenue is reviewing the situation and could issue new guidance in time for Wednesday's Budget.
Any tax payable would be based on the rental value of the property.

sky.com

digger

How would that affect the Algarve tourist business owners, if "regulars" look elsewhere for property abroad??

Hello Biffa,

Thank you for you reply it was very informative (I think) I have tried to PM you but every time I try and register it says not valid

My e-mail address is wastex102000@yahoo.co.uk

Kind regards

Helen