Domicile election for non domicile spouse of UK deceased domicile

Trusts Discussion
1

I have a deceased UK domiciled client whose wide lives in Argentina and is a Spanish domicile. I understand she can within 2 years of death make an election to be treated as UK domicile and therefore benefit from the spouse exemption. Such an election needs to be in force for at least 4 tax years - is this from the date of the death or from the date of the actual election? Also what is the address she is to send such an election to? Is there any specific format or would a letter to HMRC sufficient? Do I submit it with the application for probate or should it be submitted separately and if so, where exactly?

2

I did this recently for a someone, but where the UK domiciled spouse was still alive. There is a fair bit of guidance including the address to send it to in the IHT manual at IHTM13040 onwards.

3

I have stolen this link but it sets out very well the information that I think you need.
inheritance-tax-election-for-non-uk-domiciled-spouses.pdf (farrer.co.uk)

Also HMRC manuals have lots of info, including the sort of information they need in the letter.

IHTM13043 - Inheritance Tax Manual - HMRC internal manual - GOV.UK (www.gov.uk)

Good luck

Lucy Orrow CTA TEP
Lambert Chapman LLP

4

The election is treated as having effect on the date specified in the election. Such date must be within a period of 7 years ending with the date of the deceased spouse’s death.

The election must be given in writing and made within 2 years of the death of the deceased spouse.

There is no prescribed form of election (but see IHTM 3043). Address to which to send any letter is:
Trusts and Estates Risk Team (Election)
IHT, Ferrers House, Castle Meadow Road, Nottingham, NG2 1BB.

Any election effectively ceases on 5 April of the fourth siuccessive tax year of non-residence. More specifically it ceases to have effect once the individual has been non-resident in the UK for a period of 4 successive tax years commencing at anytime after the election has been made.

Malcolm Finney

5

Many thanks very helpful!

6

Yes Id found this article from Farrers. The IHTM very useful too, Thank you

1 Like
7

Many thanks - the address seems to differ from the address in IHTM - do you think it might have changed?

8

Apologies. Correct address is now:

WMBC Assets Risk Team (Elections), Inheritance Tax, HM Revenue and Customs, BX9 1HT

Malcolm Finney

9

Many thanks for clarifying