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TaxRobin, Tax Consultant
Category: Tax
Satisfied Customers: 17198
Experience:  International tax
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I am a British citizen domiciled in the UK and in my 70s. I

Customer Question

I am a British citizen domiciled in the UK and in my 70s. I am planning to move to live in Austria. Austria does not heave death duties . As an economically self sufficient person exercising treaty rights how long would I need to be resident in Austria to take advantage of the double taxation agreement between the UK and Austria for my estate to avoid UK inheritance tax when I pass away?
Submitted: 4 years ago.
Category: Tax
Expert:  TaxRobin replied 4 years ago.
Hello and thank you for posting your question.
First, if you are domiciled abroad, inheritance tax applies only to your UK assets.
For the purpose of the Double Taxation agreement, DTCs allow
the country in which the transferor is (or in the case of a death, was) domiciled to tax all property wherever it is, and the other country to tax only specified types of property, such as immovable property, in its territory.
For the 17 out of 20 rule to apply you must have been resident (for Income Tax purposes) in the UK on or after 10 December 1974 and in not less than 17 out of the 20 years of assessment, ending with the year of assessment in which the relevant event falls. The year of assessment is a tax year, so it runs from 6 April to 5 April.
For you not to be held as deemed domicile in UK you would have to make sure you were not in the UK for 17 years during the 20 before you pass away.
I hope this information is useful.