How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Leon Your Own Question

Leon
Leon, Solicitor
Category: Australia Law
Satisfied Customers: 43491
Experience:  24 years experience. Admitted in New South Wales and the UK.
12124641
Type Your Australia Law Question Here...
Leon is online now

I understand that there is no inheritance tax/ capital transfer

Resolved Question:

I understand that there is no inheritance tax/ capital transfer tax payable on the estates of Australian citizens. My father-in-law, who emigrated to Australia shortly after the Second World War , has estate in Australia of approximately £1 million, half in cash and half in a house in Perth, which he bought 10 years ago (its value is probably down on the purchase price)
He was involved in a car crash recently in the UK and has been diagnosed with dementia . Since both his children are now living in the UK they do not want him to move him back to a long term care home in Australia and have put him into an accessible home near Carlisle .
Are there any steps which we should take to ensure that, on his death, his estate is not liable to UK inheritance tax ?
Submitted: 1 year ago.
Category: Australia Law
Expert:  Leon replied 1 year ago.
Good Morning, My name is ***** ***** I am a NSW Solicitor. Thank you for your question, and will do my best to assist you with your question. Please understand this is not legal advise Please understand this is not legal advise but a guide to assist you.It all depends on whether the HMRC accepts that he is not domiciled in the UKhttps://www.gov.uk/inheritance-tax/when-someone-living-outside-the-uk-diesIf he is seen as living here then there is only inheritance tax on his UK assetsI suggest you look at getting a ruling form themIf he is living there now, they may deem him a UK domicile and he will pay Inhertence tax
Customer: replied 1 year ago.
Well.........with respect that was a statement of the obvious, and the site you refer to seems only to discuss brits. I was looking for some advice based on your judgement and experience of 18 years, like various things he ought to do/ or not do in order to protect his Australian domicile and his estate from UK IHT. I lool fwd to hearing if you can oblige. Regards
H
Expert:  Leon replied 1 year ago.
When he moves ot the UK his domicile changes.If you can get a ruling that he does not lose his Australian Domicile from the UK authorities then there is no IHTLeaving Australia causes him to start losing his domicile.If he never returns then his domicile is where he passes away.If he does not intend to return to Australia then his domicile changes.The rules for this are determined by the IHT rules not Australia. Australia will only deal with Australian laws and he will be affected there as well.If he leaves his home and rents it out and does not return in 6 years then he may be liable for Capital Gains Tax if it was purchased after 20 September 1985Also please understand I can only provide you with general information. I cannot give you detailed legal advise. It is clearly stated when you join the site. The information is legally based but it is not legal advise.
Customer: replied 1 year ago.
Good morning,
Thank you for your reply.
I asked a very specific question below in my first email
Are there any steps which we should take to ensure that, on his death, his estate is not liable to UK inheritance tax ?
You put in your first email in response that you do not give specific advice etc etc but in that case you should not have picked up the question. Unless you wish to re-address your stance in this matter I will post the question again to Just Answer
Expert:  Leon replied 1 year ago.
Good EveningHe has to live in Australia to be able to avoid the IHT I understand your disappointment, but if he lives in the UK then you will pay the IHT.If he is willing to pay stamp duty then you can take the property out of his name and transfer it to a trust and you can be a beneficiary of the trust as well as him. But the problem there is that you will need to have a person that is in Australia to be a trustee to keep the trust as Australian resident. But you cannot circumvent the law and void it otherwise. You have to take the asset out of his name. I hope this is clearer.
Leon, Solicitor
Category: Australia Law
Satisfied Customers: 43491
Experience: 24 years experience. Admitted in New South Wales and the UK.
Leon and other Australia Law Specialists are ready to help you

What Customers are Saying:

 
 
 
  • PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent. Three H.
< Previous | Next >
  • PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent. Three H.
  • Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!! Elaine
  • My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer. Eric
  • I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight. Michael
  • It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem. Tony
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
 
 
 

Meet The Experts:

 
 
 
  • José M.

    José M.

    Attorney

    Satisfied Customers:

    21
    Spanish Attorney
< Previous | Next >
  • http://ww2.justanswer.com/uploads/JO/JoseMagadan/2013-6-27_16279_IMG6290copia.64x64.JPG José M.'s Avatar

    José M.

    Attorney

    Satisfied Customers:

    21
    Spanish Attorney
  • http://ww2.justanswer.com/uploads/RA/ratioscripta/2012-6-13_2955_foto3.64x64.jpg Ely's Avatar

    Ely

    Attorney

    Satisfied Customers:

    6
    Private practice with experience in common law, civil law, international family law, and international contracts.
  • http://ww2.justanswer.com/uploads/MS/MsAM/2012-6-9_16426_anna.64x64.jpeg Anna's Avatar

    Anna

    Teacher, writer, biologist

    Satisfied Customers:

    270
    Great research skills, variety of work experiences, teaching experience.
  • http://ww2.justanswer.com/uploads/PD/pdheslin/2012-6-6_232056_pambig.64x64.jpg pdheslin's Avatar

    pdheslin

    Consultant

    Satisfied Customers:

    51
    20+ years of internet site creation and search engine optimization. Dozens of search tools at my disposal.
  • http://ww2.justanswer.com/uploads/BL/blueflowers1063/2013-10-10_35834_KimHolidays1.64x64.jpg Kim D.'s Avatar

    Kim D.

    Consultant

    Satisfied Customers:

    27
    Researcher 20+yrs in small and large institutions
  • http://ww2.justanswer.com/uploads/NU/nursescare4u/2013-3-31_03429_JApic.64x64.jpg findinganswers's Avatar

    findinganswers

    Internet Researcher

    Satisfied Customers:

    22
    Internet Researcher, Nurse for over 17 years, and can find answers for you!