I've bought a UK property, as my job will keep me here for 5 years or more. I have put a Will in place as my conveyancer suggested to deal with the house. It covers all my assets, including my assets in France, where I remain domiciled
In addition to tax, domicile affects succession (and divorce). The provisions which deem someone domiciled in the UK after 15 years' residence apply to tax only.
This means that someone who dies domiciled outside the UK, whether deemed domiciled in the UK for tax purposes or not, may need to take forced heirship issues into account. France, for example, has forced heirship provisions. To decide which succession laws should apply to the client's UK and French property can be complicated (but unaffected by the UK leaving the EU). The UK looks to the domicile of the deceased to decide succession, so France; France, under the EU succession regulation known as Brussels IV, then looks to the place where the individual was habitually resident, so the UK; the UK then takes the position that UK real property is governed by UK succession laws but everything else is covered by French forced heirship provisions. It is very important that the client is made aware of both the UK and French succession issues, and the taxes which follow from them, together with planning steps to mitigate their impact, when estate planning.
For more information or advice, please contact Kelly Noel-Smith, Partner in our Private Client team.
Senior Executives: thinking of relocating to the UK?
When the employee has relocated to the UK and employment has started
- I assume I can't get naturalised as a British citizen and obtain a passport if I want to remain non-domiciled?
- What factors other than citizenship will be taken into account in determining my domicile status and, if I do become UK domiciled, can I reverse the position?
- I am being offered Crypto tokens as an incentive by my employer. How will I be taxed?
- Once I become UK resident, can I avail myself of the remittance basis in respect of any income or gains arising on my cryptoassets?
- I have old US stock options granted 2 years ago by my then US employer over shares in the US top company of the group granted when my duties were solely in the US. I am now employed by the wholly owned UK subsidiary: do I pay UK taxes on vesting?
Please do contact any member of our Sen Ex Advisory Group to suggest a question or to find out more about how we can help.
Senior Executives: thinking of relocating to the UK?
We answer common questions raised at key stages of the relocation process.
