UK inheritance tax: checking the current residence-based rules
From 6 April 2025, HMRC replaced the domicile and deemed domicile rules with new long-term UK resident rules. 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. If the transfer or the death happened before 6 April 2025, this guidance does not apply to it — the pre-2025 rules still do.
The residence test
You are a long-term UK resident in a tax year if you are tax resident in the UK for either:
- the previous 10 consecutive years, or
- a total of 10 years or more within the previous 20 years.
You will not be a long-term UK resident if all three of these apply:
- on 30 October 2024 you did not have UK domicile or deemed domicile status
- for the tax year 6 April 2025 to 5 April 2026 you are non-resident
- you do not return to the UK.
If you have left the UK
You can still keep long-term UK residence for up to 10 tax years after you leave. The period is shorter if you have not lived in the UK for all the previous 20 years.
| Years you previously lived in the UK | You stop being a long-term UK resident |
|---|---|
| 10 to 13 years | 3 years after you leave |
| 14 years | 4 years after you leave |
| 15 years | 5 years after you leave |
If you return 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.
A shorter route applies to people who had deemed UK domicile on 30 October 2024. They stop being a long-term UK resident after 3 years of non-residence if they are non-resident for the tax year 6 April 2025 to 5 April 2026 and do not return to the UK.
What is chargedInheritance Tax is charged on transfers of overseas assets you owned outright, or on death, when you are a long-term UK resident.
Trusts are treated separately, and the conditions attach to the individual trust and assets rather than to your residence status alone. 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 at the time. No Inheritance Tax is payable on your death in respect of 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.
Tell your trustees when your long-term UK residence status changes, because separate trusts charges may then apply.
What to check next
Start by confirming the date. A transfer or death before 6 April 2025 sits under the old rules and needs separate analysis.
Then count your UK tax residence years against the 10-consecutive-year and 10-out-of-20-year tests, keeping any qualifying period of non-residence in view.
If you have left the UK, work out how long you lived there beforehand, since that shortens the post-departure period.
If any of your assets sit in a trust, check each condition separately rather than assuming your residence status settles the outcome. Residence status can change what applies to a trust even where the trust itself is unaffected by your moving.