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UKSolicitorJA
UKSolicitorJA, Solicitor
Category: Law
Satisfied Customers: 4312
Experience:  English solicitor with over 12 years experience
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My 90+ widowed sister is domiciled in the Isle of Man and has

Resolved Question:

My 90+ widowed sister is domiciled in the Isle of Man and has made her will there. Through ill health she may have to enter a care home. If she cannot find a suitable one in the IOM and has to come over to England where does she stand for Inheritance Tax
Submitted: 2 years ago.
Category: Law
Expert:  UKSolicitorJA replied 2 years ago.
Hello,
Has she got any assets in England/UK and has she lived in England/UK previously? If yes, please give details.
Customer: replied 2 years ago.
Yes, she has a substantial Pensioners Bond deposit with National Savings & Investments but no other Uk Assets.
Born in England in 1923 she moved to the IOM with my brother-in-law in 1981 and has lived there ever since.
He died in 2006.
Expert:  UKSolicitorJA replied 2 years ago.
Thank you.
If the bond deposit is more than £325K, the excess amount will be subject to inheritance tax, even though she is not domiciled in the UK.
All the best
Customer: replied 2 years ago.
Yes substantially more than £325K.
If it were invested in Gilts would they then be excluded.
BUT my question was really - "If she had to come to England for a suitable care home would she loose her non-domicile status for IHT."
Expert:  UKSolicitorJA replied 2 years ago.
Thank you.
UK government gilts which were issued ‘free of tax to residents abroad’ are not subject to IHT as they are excluded assets.
There’s no Inheritance Tax on government gilts issued:
before 30 April 1996 - and the deceased wasn’t deemed domiciled or resident in the UK
on or after 30 April 1996 - and the deceased wasn’t resident in the UK
The above appears here:
https://www.gov.uk/inheritance-tax/when-someone-living-outside-the-uk-dies
As your mother was UK born and lost her domicile due to her move to the Isle of Man, from April 2017, she will become UK domiciled again as she has moved back to the UK, it does not matter for what purpose.
So,yes is the answer to,your question.
See here
https://www.gov.uk/government/publications/technical-briefing-on-foreign-domiciled-persons-changes-announced-at-summer-budget-2015/technical-briefing-on-foreign-domiciled-persons-changes-announced-at-summer-budget-2015
All the best
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