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yes, she is also non-uk domiciled.
Hi again.Take a look at the notes here. Inheritance Tax in the UK is mainly based on domicile, not residence as UK CGT is. Only the UK based assets of a non-UK domiciled individual are liable to UK IHT. That excludes UK bank accounts denominated in non-UK currency.1 If you pass away, your share of the value of your UK property would normally be included in your UK estate for IHT purposes. However, the first £325,000 of that will be taxed at 0%, hence the name its given, the nil-rate band. Any balance will be taxed at 40%. Any part of your UK estate which you leave to your wife or her to you will be exempt from IHT due to the intra-spouse transfer rules if the receiving spouse has their permanent home in the UK. If you or your wife don't have your permanent home in the UK, then the estate of the spouse to die first will have to use the £325,000 nil-rate band.If you or your wife leave all your UK estate to one another, then there will be no UK IHT liability if the surviving spouse has their permanent home in the UK. In that case, the unused nil-rate band of the spouse who passes away first can be transferred to the estate of the surviving spouse. Take a look here and here for more information on IHT..2 You can leave the property to your children. If you and your wife passed away at the same time, you would each have a £325,000 nil-rate IHT band which at its current value would cover the UK property. If the house was worth £1,000,000 for example and you both passed away at the same time, £350,000 would be liable to UK IHT at 40% and if there was not sufficient cash or other liquid assets, either in the UK or outside the UK, your estate may have to sell the UK property to pay the IHT.I hope this helps but let me know if you have any further questions.
If am confused. I am not resident nor uk domiciled. So what does this simply mean in terms of the question I asked?