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bigduckontax
bigduckontax, Accountant
Category: Tax
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I am considering moving to Australia to live near my daughter.

Resolved Question:

I am considering moving to Australia to live near my daughter. How long do I have to be outside UK to become non resident for inheritance tax?
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. When you leave the UK you should fill in a Form P85 and send it to HMRC. On receipt that Department will classify you as non resident for the tax year following your date of departure and furthermore split the leaving year into two portions, one resident and the other non resident. Inheritance Tax (IHT) depends on domicile. In basic terms it takes 17 or so years to change your domicile so your world wide asstes will be exposed to UK IHT for many years after your departure. IHT kicks in at a 40% fklat rate for assets in excess of 325K although inter spousal and charitable bequests do not count against this limit. Oz has no IHT so once you achieve domicile in Australia you will escape any taxation. It all boils down to a long term situation. Achieve Oz domicile and you are out of the wood. If your estate is below the 325K limit then you do not need to concern yourself with the tax anyway. I do hope that I have been able to shed some light on your intentions.
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Expert:  bigduckontax replied 1 year ago.
Thank you for your support.