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22 Gibraltar International www.gibraltarinternational.comThe new legislation (UK Finance Act 2025) which came into effect on the 6th April, is radically overhauling and modernising the UK%u2019s tax system, significantly impacting the UK tax position for individuals moving from, or to, the UK. This regime change may benefit Gibraltar residents, other non-UK residents, and those who could become UK resident in the future. Liability to UK Inheritance Tax (IHT) on non-UK assets now determined by a new concept of %u2018Long Term UK Resident%u2019, replacing %u2018Domicile%u2019IHT is a tax on transfers of value from an individual%u2019s estate. It is principally charged on transfers on death but is also charged on transfers made within 7 years of death, some other lifetime transfers and on trusts within the UK%u2019s relevant property regime. Long-Term UK Resident (LTR)Up until the 5th April 2025, the general law concept of domicile was fundamental to the scope of IHT, with UK domiciled individuals being liable to IHT on their worldwide assets, and non-UK domiciled individuals being liable to IHT on their UK sited assets only. However, from the 6th April, the IHT, domicile has been replaced by the concept of Long-Term UK Resident (LTR). %u2022 An individual is a LTR if they were UK resident for 10 or more of the previous 20 UK tax years. %u2022 LTRs are liable to IHT on their worldwide assets.%u2022 Non-LTRs are liable to IHT on their UK sited assets only. The general rule is that a LTR will retain TaxBy Lynette Chaudhary, Tax Director, Sovereign Trust (Gibraltar) Limited%u2018Residency%u2019 not %u2018domicile%u2019,modernising the UK tax systemContinued p24