Tax Planning

Inheritance Tax Planning for Expats

Protect your estate and preserve your legacy. Credible Life provides specialist IHT planning for expats — helping you pass on your wealth to the people you love, not HMRC.

Preserve More of Your Wealth for the Next Generation

UK inheritance tax at 40% on estates above the nil-rate band can take a substantial portion of the wealth you have spent a lifetime building. For expats, the rules are particularly complex — UK domicile status, the location of assets, and applicable double taxation treaties all affect your IHT position.

Credible Life provides specialist IHT planning for expats. We assess your current exposure, explain your options clearly, and implement strategies designed to reduce your liability as much as legally possible while ensuring your wishes for your estate are fully respected.

The earlier you plan, the more options are available to you. Many IHT planning strategies require time to be effective — start planning now.

What We Cover

✓ IHT liability assessment
✓ Nil-rate band and RNRB planning
✓ Lifetime gifting strategies
✓ Trusts to reduce IHT exposure
✓ Business Property Relief planning
✓ Life insurance written in trust
✓ Cross-border estate planning
✓ Domicile status review for IHT purposes

Key IHT Planning Strategies

Lifetime Gifting

Making gifts during your lifetime is one of the most effective ways to reduce IHT. Gifts made more than seven years before death are generally exempt. We help you structure a tax-efficient gifting strategy that reduces your estate while keeping you financially secure.

Trust Planning

Assets held in certain trust structures can be removed from your taxable estate immediately or after seven years. Trusts also allow you to control how and when beneficiaries access wealth — protecting it from divorce, creditors, and poor financial decisions.

Life Insurance in Trust

A life insurance policy written in trust pays out directly to your beneficiaries outside of your estate — providing funds to pay any IHT bill without the need to sell assets, and without adding to your estate’s taxable value itself.

Business Property Relief

Business assets including shares in qualifying private companies and farmland may qualify for Business Property Relief — reducing the IHT on these assets by 50% or 100%. We advise on whether your business interests qualify for the relief.

Residence Nil-Rate Band

An additional IHT allowance is available when a main residence passes to direct descendants. We ensure you make full use of the Residence Nil-Rate Band and the standard nil-rate band — potentially sheltering up to £1,000,000 per couple from IHT.

Domicile Review

UK domicile status is the single biggest determinant of UK IHT exposure for expats. We review your domicile position and advise on strategies to change your domicile of choice where this is genuinely beneficial and achievable.

Frequently Asked Questions

What is the UK inheritance tax threshold?

The standard nil-rate band is £325,000 per person. With the Residence Nil-Rate Band of up to £175,000 where a main residence passes to direct descendants, a married couple can potentially shelter up to £1,000,000 from IHT. Above these thresholds, the rate is 40%.

Am I subject to UK IHT if I live abroad?

If you are UK-domiciled or deemed domiciled after 15 years of UK residence, your worldwide assets are subject to UK IHT regardless of where you live. If you are non-UK domiciled, only UK-situated assets are in scope. We assess your domicile position as part of any IHT review.

How effective are trusts at reducing IHT?

Trusts can be very effective. Assets placed in a discretionary trust are generally outside your estate after seven years. However, trust law is complex and the right structure depends entirely on your individual circumstances — we assess every case carefully.

Is it too late to plan if I am elderly?

It is never too late to plan, though some strategies require time to be effective. Even in later life there are IHT planning options available — including life insurance in trust, charitable giving, and certain trust structures that provide immediate benefits.

Protect Your Estate Today

Get a free inheritance tax assessment from a Credible Life adviser. We will calculate your current IHT exposure and identify the most effective strategies to protect your estate for the people you love.