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Leon, Solicitor
Category: Australia Law
Satisfied Customers: 46240
Experience:  24 years experience. Admitted in New South Wales and the UK.
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I am UK resident and tax payer but I lived 20+years in Australia

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I am UK resident and tax payer but I lived 20+years in Australia and still have substantial funds in Australian banks which were earned there and have never been in UK. My daughter is resident in Australia and stands to inherit that money under the terms of my will. Under Australian inheritance law there is no tax liability on that money but will it be subject to UK IHT?
Good MorningMy 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.I am sorry to say but the news is not good.The law of the UK says that IHT applies to your worldwide assets not just the assets in the UK assume you have been declaring the income earned on those bank accounts in the Uk and paying tax on them in the UK. You may have to consider changing the structure and having the accounts in Australia be placed in a trust where you are a beneficiary as is your daughter. This way you would not own them.You would have to speak to a Financial adviser here on setting all this up.You taking them out of your name you then are not liable to pay tax in the UK and they are not yours.Here is some information for you about IHT hope this makes sense and is of assistance. If there is nothing furtherHave a Great Christmas if I do not hear form you before then.You are very welcome and thank you for using my services.If I have missed anything, or you have any further questions please let me knowIf there is anything else in the future please do not hesitate to ask.Please do not forget to leave positive feedback.RegardsLeon
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