IHTM47020 - Long-term UK residence test
From 6 April 2025, the test听in IHTA84/S6A听for whether听蹿辞谤别颈驳苍听assets are in scope for Inheritance Tax听will be whether an individual is a long-term UK resident, meaning they have been resident in the UK for at least 10 out of the last 20 tax years immediately preceding the tax year in which the chargeable event (including death) arises.听听
If an individual has been UK resident for at least 10 out of 20 years and then becomes non-resident and does not return to the UK before the chargeable event, there will be provision to shorten the length of time they remain a long-term UK resident if they had been UK resident for between 10 and 19 years out of the last 20.听听
For those who are resident between 10 and 13 years, they will remain in scope for the minimum听period of 3 tax years.听听
This will then increase by one tax year for each additional听year of residence听up to a maximum of 10听tax years.听听
For those not resident at the date of the chargeable event (including death)听where the years of non-residence听are not consecutive,听the test at IHTA84/S6A(2) is applied and the听individual will remain a long-term UK resident until the required number of years of consecutive non-UK residence has听passed听(IHTA/S6(3).听
听
Number of UK residence years听 |
Years听in scope for IHT听 |
13 or less听 |
3听听 |
14听 |
4听 |
15听 |
5听 |
16听 |
6听 |
17听 |
7听 |
18听 |
8听 |
19听 |
9听 |
20听 |
10听 |
听
So, if a person was听UK听resident for 15 out of 20 tax years on leaving听the UK, they would remain in scope for 5 tax years; if resident for 17 out of 20 tax years on leaving, they would remain in scope for 7 tax years.听
An individual will not be treated as long-term UK resident for Inheritance Tax听purposes in the year following听10 consecutive years of non-residence, even if they return to the UK;听the test is effectively reset. This aligns with the 10 consecutive years of non-residence required听to access the 4-year Foreign Income and Gains (FIG)听regime.听听
The long-term UK residence test applies regardless of an individual바카라 사이트檚 common law domicile.听听
There are transitional rules for non-domiciled or deemed听domiciled (IHTM13024)听individuals who are non-UK resident听in 2025-26 see (IHTM47021).听
From 6 April 2025, Inheritance Tax听will be charged on foreign听assets owned outright when an individual听is听a听long-term UK resident.听听
Whether an individual is resident in a tax year will be as determined听for the purposes of Income Tax and Capital Gains Tax (CGT).听听
The Statutory Residence Test (바카라 사이트淪RT바카라 사이트�)听(RDRM11000)听applies for 2013 to 2014 onwards. For tax years prior to 6 April 2013 the pre-SRT rules will apply (RDRM10011). Where an individual听has split year treatment under the SRT this will count as a full year of UK residence for Inheritance Tax听purposes.听
For a description of foreign unsettled property please see IHTM04260听and for foreign settled property please refer to听IHTM04271.听 For Inheritance Tax听 purposes, UK assets include property within Schedule A1 (indirectly owned UK residential property)听(IHTM04311) and non-UK assets include some UK assets given excluded property status (such as holdings in Authorised听Unit Trusts (AUTs) and Open-ended Investment Company바카라 사이트檚听(OEICs)听(IHTM04262).听
Examples
Example 1听
Mohammed moves to the UK and is resident here for a period of 11 years. When Mohammed leaves the UK, he will continue to be in scope for IHT听purposes for the minimum听period of 3 years.听
Example 2听
Sasha moves to the UK听on a 4 year听work secondment. At the end of the assignment, Sasha returns to Croatia and remains听there for 3 years.听 She subsequently听returns to the UK for a period of 11 years. Sasha then leaves the UK once again and under听the听10听out of 20 long-term UK residence test, Sasha has been resident in the UK for 15 out of the last 20 years and will therefore remain in scope for听IHT听purposes for 5 years.听
Example 3听
Dexter听lives in the UK for 30 successive years before emigrating to Canada. Dexter remains听in scope for IHT听purposes for the maximum听period of 10 years.听
Example 4听听
Jakub dies on 26 June 2031听in Poland.听听
Jakub바카라 사이트檚 last year of UK residence was听2026-27. To establish听if Jakub was听听a long-term UK resident at the date of his death, we need to look back over the previous听20 years from the date of his last year of UK residence IHTA84/S6A(2).听
Of the tax years from听2007-08听to 2026-27听Jakub was resident in the UK for 18 years. Jakub will remain a long-term UK resident until听8 years of consecutive non-residence has passed听and so听until 6 April 2035听.听IHTA84/S6A(3).听 Jakub is therefore long-term UK resident at his death听in 2031-32.听
Example 5听
Gurpreet is UK resident for 10 years听up to and including 2027-28听and then becomes non-resident.听 She becomes UK听resident again in 2031-32, but听will not be long-term UK resident in that year.听 This is because听she was UK听resident for听10 out of 20 years when she left the UK, and so she ceases to be long-term resident after 3 consecutive years of non-residence ending with the year before听the current tax year (2028-29, 2029-30, 2030-2031). If she remains听UK听resident, she will be long-term UK resident in 2032-33 because she will then have 11 out of 20 years UK residence听and will no longer have consecutive years of听non-residence ending with the preceding tax year.听听听
Example 6听바카라 사이트� Transitional Provisions听
Ricardo听dies on 2 June听2027 in Spain.听
Ricardo바카라 사이트檚 last year of UK residence was 2022-23听when he returned home to live permanently in Spain听after being resident听in the UK for 15 tax years.听
Under the transitional rules (IHTA84/S45(1)), Ricardo was not domiciled in the UK听under common law听on 30 October 2024, but听was deemed听domiciled because he had resided听in the UK for 15 tax years.听 He was听not听resident in the UK听for any of the 3听years immediately听prior to the year of his death.听听
After leaving the UK, under the transitional provisions, Ricardo remained听a long-term UK resident听for IHT purposes for the minimum听period of 3 years听and so until 5听April 2026.听 He was therefore not听a long-term UK resident at his death.听