Offshore Inheritance Tax Loophole Closed

Labour has closed an offshore inheritance tax loophole, bringing non-UK assets into the scope of inheritance tax in the UK.

These changes mean non-UK assets will be in scope for inheritance tax when an individual has been resident in the UK for at least 10 out of the last 20 tax years. If this applies and the person then leaves the UK, they can remain in scope for inheritance tax on non-UK assets for between three and ten years.

Non-UK assets a person has put into a settlement—assets held in trust or a similar structure—will also be subject to inheritance tax when the settlor is deemed a long-term resident.