Re: IHT & Domicile



Under UK tax legislation a UK domiciled individual is subject to IHT on all property owned whether located in the UK or overseas.

Whilst you may become non-resident for income tax purposes by retiring to Spain, unless you give up your domicile, which would involve giving up your citizenship, UK passport and various other matters; you will still be treated as UK domiciled.

Giving property to children and continuing to live in a property may also make you liable under the gift with reservation of benefit rules introduced in the Finance Act 1986 and extended in the FA 2004.

The above would apply in addition to any taxes you might face in Spain.