Long-term UK residence for IHT (6 April 2025 onwards)

Produced by a Tolley Trusts and Inheritance Tax expert

Trusts and Inheritance Tax

Guidance

This guidance note sets out the conditions that need to be fulfilled to be treated as long-term UK resident (LTUKR). It details the rules for those arriving in and those leaving the UK and the special rule for young persons. It also considers the transitional rules for those who leave the UK before 6 April 2025.

Introduction

The long-term UK residence (LTUKR) rules replace the long-standing domicile rules (see the Domicile for UK inheritance tax guidance note) as the connecting factor for UK inheritance tax purposes from 6 April 2025. The LTUKR status of an individual will determine whether their overseas assets are within the scope of inheritance tax or are excluded property. Domicile will continue to be important for other purposes (see below).

‘Formerly domiciled residents’ will now be treated in the same way as other individuals; there are no longer special rules that apply to them to decide their LTUKR status.

Significance of long-term UK residence (LTUKR)

If the individual is in scope to UK IHT

Continue reading the full document

To gain access to additional expert tax guidance, workflow tools, generative tax AI, and tax research, register for a free trial of Tolley+™

TAKE A FREE TRIAL NOW

Popular Articles

Corporation Tax

Corporate interest restriction ― administrative aspects

Corporate interest restriction ― administrative aspectsThe corporate interest restriction (CIR) regime has some specific administrative rules in addition to the general administrative requirements for corporation tax returns. This guidance note does not include commentary on provisions that are

14 Jul 2020 11:19 | Produced by Tolley Read more

Owner-Managed Businesses

Repairs and renewals

Repairs and renewalsThe key consideration in determining whether expenditure on repairs and renewals is allowable as a deduction for tax purposes is whether it is capital or revenue in nature. In some cases, it can be relatively straightforward to identify revenue repairs. HMRC provides the

14 Jul 2020 13:23 | Produced by Tolley Read more

Employment Tax

Income tax paid on behalf of employee

Income tax paid on behalf of employeeIntroductionEmployers may wish to make payments of employment income to an employee / director without the employee suffering a tax or NIC cost on that pay. In other words, the employer wants to pay an amount net of tax and NIC. In some instances, often with

14 Jul 2020 11:58 | Produced by Tolley in association with Paul Tew Read more

��˾��ҹ��