Can anyone advise whether the spouse exemption applies for a non-Domiciled individual leaving a UK asset (worth well in excess of the NRB) to his UK domiciled wife in his will?
Rachel Gibson
R A Savage & Co
Can anyone advise whether the spouse exemption applies for a non-Domiciled individual leaving a UK asset (worth well in excess of the NRB) to his UK domiciled wife in his will?
Rachel Gibson
R A Savage & Co
yes it does
Simon Northcott
Yes, the only exception to the usual rule is dom -> non-dom (s.18(2)).
Andrew Goodman
Osborne Clarke LLP
My view regarding spouses/CPs is that:
Non-dom to non-dom = spouse exemption available
Dom to dom = spouse exemption available
Non-dom to dom = spouse exemption available
Dom to non-dom = spouse exemption NOT available – you get the restricted spouse exemption (£325K) and any available nil rate band.
Jill MacMahon
Thackray Williams LLP
Yes, I believe Section 18 of the IHT Act 1984 deals with this. (It is only if a UK domiciled individual leaves assets to a non-UK domicile spouse where the full spouse exemption does not apply - a £325,000 limit applies to that, and even then an irreversible election to be treated as UK domicile may be beneficial.)
Haroon Rashid
I Will Solicitors Ltd
When considering the impact of s.18(2) IHTA 1984, the following need to be borne in mind:
It applies to all transfers of value from a UK spouse/civil partner to a non-UK domiciled spouse/civil partner, so that lifetime gifts will reduce the relief available on the death of the party domiciled within the UK.
As with relief under s.18, generally, it cannot be applied retrospectively to gift made before the marriage/civil partnership.
Paul Saunders