Q: Are my late husband’s overseas assets exempt from UK IHT when left to me?
A: My husband died recently and left all his assets to me in accordance with his last will. We were both EU citizens, and we lived and were domiciled in the UK with settled status. Most of my husband’s assets were situated outside of the UK. Does the UK spouse tax inheritance tax (IHT) exemption also include his assets abroad?
Arthur Weller Replies:
Provided both of you were UK-domiciled (for deaths before 6 April 2025) or both were long-term UK residents (for deaths on or after 6 April 2025), the UK spouse or civil-partner exemption covers everything left to you, including assets outside the UK. The IHT legislation exempts transfers to a spouse without limiting the exemption to UKsited property (see IHTA 1984 s 18), and HMRC’s Inheritance Tax Manual (at IHTM11031 and 13031) confirms the general rule that transfers between spouses are wholly exempt (subject to the caveat about long-term UK residence or domicile).
