Inheritance Tax if you’re a long-term UK resident
Source: gov.uk (2025-04-05)

How new long-term UK residence rules affect Inheritance Tax from 6 April 2025.

From 6 April 2025 the domicile and deemed domicile rules were replaced by new long-term UK resident rules.

From 6 April 2025, if you are a long-term UK resident, your non-UK (overseas) assets may be subject to Inheritance Tax if you make a transfer of assets or die.

You should not follow this guidance if the transfer of assets or the person’s death is before 6 April 2025. Find out more about Inheritance Tax deemed domicile rules (https://www.gov.uk/guidance/inheritance-tax-deemed-domicile-rules).

Check if you are a long-term UK resident

You are a long-term UK resident in a tax year if you are tax resident in the UK for either:
- the previous 10 years consecutive years
- a total of 10 years or more within the previous 20 years
When you will not have long-term UK residence

You will not be a long-term UK resident if:
- on 30 October 2024 you did not have UK domicile or deemed domicile status
- the tax year 6 April 2025 to 5 April 2026, you are non-resident
- you do not return to the UK
Leaving the UK as a long-term resident

You can still keep long-term UK residence for up to 10 tax years after you leave the UK.

This is shorter if you have not lived in the UK for all the previous 20 years.

For example, if you previously lived in the UK for:
- 10 to 13 years, you’ll stop being a long-term UK resident 3 years after you leave
- 14 years, you stop being a long-term UK resident 4 years after you leave
- 15 years, you stop being a long-term UK resident 5 years after you leave
If you return to the UK after 10 consecutive years of non-residence, the 10 out of 20 years residence test is reset. Only the year you return and future years of residence count towards your UK residence.

Leaving the UK as a deemed UK domicile

You stop being a long-term UK resident after 3 years of non-residence if:
- on 30 October 2024 you had deemed UK domicile
- for the tax year 6 April 2025 to 5 April 2026, you are non-resident
- you do not return to the UK
Charging inheritance tax on overseas assets

Inheritance Tax is charged on transfers of overseas assets you owned outright, or on death, when you are long-term UK resident.

Inheritance Tax will be charged on any overseas assets in a trust you have set-up or added to (even when you were not a long-term UK resident). There will be no Inheritance Tax to pay on your death on trust assets that were:
- placed in the trust while you were non-UK domiciled
- overseas on 30 October 2024
- overseas on the date of your death or when your rights to the trust ended
You should tell trustees when your long-term UK residence status changes as there may be separate trusts charges to pay.

More information

Find more information about:
- how Inheritance Tax works — when someone living outside the UK dies (https://www.gov.uk/inheritance-tax/when-someone-living-outside-the-uk-dies)
- long-term UK residence in the Inheritance Tax Manual (https://www.gov.uk/hmrc-internal-manuals/inheritance-tax-manual)
- assets transferred in or out of a trust in Trusts and Inheritance Tax (https://www.gov.uk/guidance/trusts-and-inheritance-tax)