It is your domicile position rather than your residence status that determines any liability to Inheritance Tax. Domicile is a legal concept and is perhaps best described as the country you 'belong' to and consider to be your homeland.

If this is outside of the UK, although assets in the UK can still be liable, overseas assets fall outside of the charge. Action can be taken to further improve your position with regard to UK assets.

For IHT purposes there are two tests of domicile, the 'common law' test and the statutory test. If you are domiciled in the UK under either test, your world-wide estate will be liable to IHT. Therefore, it is important to ensure that Wills have been written tax-efficiently to minimise your exposure to UK tax.

Why not review your potential Inheritance Tax liability using our online calculator and see how we can help you by reading our Estate Planning guide.