Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Inheritance tax definition

What does Inheritance tax mean? Inheritance tax describes the taxation of wealth transfers on death and, in defined cases, on lifetime gifts and trust transfers. In the UK (England & Wales, Scotland and Northern Ireland), Inheritance Tax is a statutory regime under the Inheritance Tax Act 1984, charged at rates up to 40% on transfers of value. It is usually payable from the deceased’s estate by personal representatives. Lifetime charges arise on chargeable lifetime transfers (typically gifts into most trusts) and where a donor dies within seven years of a potentially exempt transfer. Key features include the nil-rate band and, where conditions are met,...

Domicile and deemed domicile for UK tax before 6 April 2025: principles, remittance basis, HMRC enquiries and evidential burdens, and IHT spouse elections

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Practice notes

This Practice Note has been archived and is not maintained.

Before 6 April 2025, an individual’s liability exposure to UK Inheritance tax (IHT) on overseas situs assets turned on their domicile status. Domicile likewise played a pivotal role in deciding whether the Remittance basis could apply to the taxation of a UK resident’s foreign (non‑UK source) income and gains. See Practice Note: Introductory guide to residence and domicile for UK tax purposes before 6 April 2025 [ARCHIVED]. For details on the ending of the remittance basis and the residence‑based IHT framework taking effect from 6 April 2025, see Practice Notes: The abolition of the remittance basis of taxation from 2025–26 and A new residence‑based regime for IHT from 2025–26.

In UK taxation, the meaning of domicile is taken from its ordinary sense and from case law, rather than being expressly prescribed in statute. Domicile is distinct from Nationality, residence or citizenship, and, in practice, the conclusion is reached by applying a set of principles to an individual’s particular circumstances. Elements of permanence and intention are central to determining domicile in such assessments...

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Web page updated on 21/05/2026

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