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Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.
Frankly, I do not think you need to worry. From 2017 trough to 2020, for a residence left to children, the IHT level rises progressively from 325K to 1 million. You could cover this risk with a short term life insurance. Please come back to me if I have not managed to solve your conundrum.
I do hope that my reply has been of assistance.
Not quite, here is the BBC press release on the matter:
'From April 2017 parents will each be offered a further £175,000 "family home allowance" to enable them to pass property on to children tax-free after their death.
This will be added to the existing £325,000 inheritance tax threshold, bringing the total transferable tax-free allowance from both parents in a married couple or civil partnership to £1m.'
If this property in in your wife's name only then there will be a tiny amount of IHT to pay (on 5K, 2K). If you put it in Joint names then you will achieve the 1 million exemption. As a non dom you are only subject to UK IHT on your UK assets.
Thank you for your support.
You could, of course, protect the small amount of IHT involved with a single owner with an insurance policy.