Does UK Inheritance Tax (IHT) affect me?
IHT can pose a serious threat to family wealth. With careful planning, married couples (including civil partners for these purposes) can usually defer IHT until the death of the surviving spouse. Then, however, IHT applies at a flat rate of 40%, although often only if the surviving spouse’s assets exceed £650,000 (it often depends upon the couple’s gifting history, in part).
IHT is a particular problem for Brits (or, to be absolutely precise, persons with a UK domicile). On death, UK domiciliaries are liable to IHT on their assets wherever situated in the world on death.