Please would someone familiar with this issue clarify for me how to treat the non dom (sic) spouse in this scenario?
Husband is born of Scottish parents and apart from working abroad in West Africa throughout his working life would nevertheless appear to be UK domiciled for IHT purposes - although since retirement 3-4 years ago, he is now based in Senegal and lives there for all but the rainy season (about three months). He married a Congolese lady in February who has just begun her spouse visa application to the UK envisaging indefinite leave to remain in 5 years’ time.
He has say £700,000 assets in UK and £350,000 assets in Senegal, all in his sole name. We shall probably make separate UK and Senegal Wills.
Does the lady qualify for the 2013 spouse exemption of £325,000? I assume so but of course, if not, why not?
When would she be free of the restriction to £325,000 ie (I assume) be regarded as UK domiciled and he entitled to unlimited spouse exemption? Will it still depend upon the particular facts and where she resides etc or is there a settled approach to this that would enable me to assure the client that the full spouse exemption would be available after a fixed time or given and definable event?
UK is to go to daughter as to £300,000 and remainder to spouse. Executors would be responsible for the IHT on worldwide assets but would have enough to pay the legacy and the tax and some left over to go to spouse. The whole of Senegal estate would be left to spouse in Senegal Will.
I shall much appreciate any comments, guidance and clarification of any misunderstanding I may have.