Expats 'should plan for IHT'

Expatriates should plan ahead in order to minimise the effects that UK inheritance tax (IHT) has on their estate, it has been suggested.

An article on web resource Shelter Offshore explains that emigres face being liable for such tax even if they move abroad - which may have to be paid by international money transfer - and that there are a number of steps they can take to ensure this is not the case for them.

It explains that tax evasion is illegal and people should not break the law, but adds paying more tax than is legitimately owed is just "as ridiculous and dangerous a path to follow".

To be exempt from IHT, expats need to lose their domicile status - the status upon which a person's estate's liability to the tax is determined - and become domiciled elsewhere.

"You will have to get rid of all assets in the UK, cut out any visits to the UK, close all bank accounts and ensure that you have not asked to be buried back in the UK when you die in your will for example," it explains.

The current IHT threshold begins at £312,000.