Tax change in estate planning & will writing
- Non-Doms
Exemption for transfers between spouses and civil partners is currently limited to £55,000 where the donor spouse (deceased) is UK domiciled and the recipient spouse is not UK domiciled. The limit has now been increased to £325,000 – in other words the current nil rate band, and the provision allows for this to change to reflect changes to the nil rate band over time.
- A non UK-domiciled spouse / civil partner can now elect whether to be considered UK – domiciled for tax purposes or continue to be non UK – domiciled. If UK domiciled then this allows the individual to qualify for a full spousal exemption, but of course they are also subject to UK taxation.
The election can be made during their lifetime or within two years of the death of their UK domiciled spouse. However, if the electing spouse ceases to be resident in the UK for four tax years then the election to be UK domiciled ceases to be effective.
There is no specified format as to how the election needs to be recorded (i.e. currently no specific HMRC election form).
- If you live in Bexhill-on-Sea, Hastings, Battle, Rye or anywhere in East Sussex or Kent, and your spouse is not UK domiciled contact me for a FREE CONSULTATION NO OBLIGATION, to help you protect your FAMILY, HOME & ASSETS.
This message was added on Tuesday 5th November 2013
