Post by davexf on Jul 20, 2022 18:15:33 GMT 1
Firstly
UK inheritance tax and domicile – what you need to know today
• UK inheritance tax follows you around the world, since it is based on domicile, not residence. You could live in Spain long term and still be liable for this legacy tax.
• It is calculated and charged on your worldwide estate.
• Being tax resident in Spain does not exempt your estate from this tax
• The standard inheritance tax nil rate band (or threshold/allowance) is €325,000. In addition, the ‘residential nil-rate band’ (RNRB) can provide an extra £175,000 allowance for a property that is, or has been, your main home
• If you are tax resident in Spain you are also liable to Spanish succession and gift tax, which is also levied on worldwide assets
Ask a specialist, cross-border wealth management adviser to review your inheritance and estate planning to confirm it is on the right track to meet your wishes for your family and heirs.
Secondly
Do you still have bank accounts, or savings and investments, in the UK?
UK-based banks continue to ask EU-resident clients to close their accounts following Brexit, and now National Savings & Investments is reminding clients that they need a UK bank account to retain their NS&I accounts and Premium Bonds.
But times have changed. Brexit rewrote the financial services landscape for UK nationals living in EU countries. When the UK left the European single market at the end of 2020, its financial advisory services industry lost EU passporting rights.
Thirdly
Nationals Savings & Investments (NS&I)
The situation with NS&I accounts is a little different, but linked, with the same consequence. As its website explains, Nationals Savings & Investments has always been a UK savings provider, backed by HM Treasury, but it does have some customers who live abroad. However, they still need a UK bank or building society account in their name.
Lastly
Your options
This can all seem unsettling. It is a significant change for UK nationals living abroad and since it involves your savings, it could be rather worrying.
If you are affected by this, or are concerned that you could be, please don’t hesitate to get in touch with Blevins Franks to discuss the options for your savings
UK inheritance tax and domicile – what you need to know today
• UK inheritance tax follows you around the world, since it is based on domicile, not residence. You could live in Spain long term and still be liable for this legacy tax.
• It is calculated and charged on your worldwide estate.
• Being tax resident in Spain does not exempt your estate from this tax
• The standard inheritance tax nil rate band (or threshold/allowance) is €325,000. In addition, the ‘residential nil-rate band’ (RNRB) can provide an extra £175,000 allowance for a property that is, or has been, your main home
• If you are tax resident in Spain you are also liable to Spanish succession and gift tax, which is also levied on worldwide assets
Ask a specialist, cross-border wealth management adviser to review your inheritance and estate planning to confirm it is on the right track to meet your wishes for your family and heirs.
Secondly
Do you still have bank accounts, or savings and investments, in the UK?
UK-based banks continue to ask EU-resident clients to close their accounts following Brexit, and now National Savings & Investments is reminding clients that they need a UK bank account to retain their NS&I accounts and Premium Bonds.
But times have changed. Brexit rewrote the financial services landscape for UK nationals living in EU countries. When the UK left the European single market at the end of 2020, its financial advisory services industry lost EU passporting rights.
Thirdly
Nationals Savings & Investments (NS&I)
The situation with NS&I accounts is a little different, but linked, with the same consequence. As its website explains, Nationals Savings & Investments has always been a UK savings provider, backed by HM Treasury, but it does have some customers who live abroad. However, they still need a UK bank or building society account in their name.
Lastly
Your options
This can all seem unsettling. It is a significant change for UK nationals living abroad and since it involves your savings, it could be rather worrying.
If you are affected by this, or are concerned that you could be, please don’t hesitate to get in touch with Blevins Franks to discuss the options for your savings