½Û×ÓÊÓƵ

Introduction

The long-term UK residence (UKLTR) rules replace the long-standing domicile rules (see the Domicile for UK inheritance tax guidance note) as the connecting factor for UK inheritance tax purposes from 6 April 2025. The UKLTR status of an individual will determine whether their overseas assets are within the scope of inheritance tax or are excluded property. Domicile will continue to be important for other purposes (see below).

‘Formerly domiciled residents’ will now be treated in the same way as other individuals; there are no longer special rules that apply to them to decide their LTUKR status.

Significance of Long-term UK residence (LTUKR)

If the individual is in scope to UK IHT