Inheritance tax is changing. Which countries could have a claim on your wealth?

Moving abroad does not necessarily take your wealth outside UK inheritance tax. Changes to the UK rules make your residence history particularly important — and forthcoming pension reforms give families another reason to revisit their plans.

For a family with a home overseas or children in another country, I would start with a simple question: which countries need to be considered before we decide what to do?

That is the thinking behind my Inheritance Tax Map. It helps you explore the countries connected to your family and identify questions worth bringing into a planning conversation.

What has changed?

Since 6 April 2025, long-term UK residence has generally replaced domicile as the test for bringing overseas assets within UK inheritance tax. The usual starting point is UK tax residence in at least 10 of the previous 20 tax years. HMRC explains the residence test.

A second change is approaching. From 6 April 2027, most unused pension funds and pension death benefits will enter the IHT calculation for deaths on or after that date. This has been legislated through the Finance Act 2026; it is not simply a proposal. Certain benefits, including qualifying death-in-service benefits, are excluded. Read HMRC’s pension reform technical note.

Already in force

Residence-based IHT

Check your UK residence history before assuming that overseas assets sit outside the UK tax net.

From 6 April 2027

Pensions within IHT

Revisit plans built around leaving a pension untouched for the next generation.

Leaving the UK may not end the connection

A long-term UK resident can remain within scope on overseas assets for between three and ten tax years after leaving, depending on residence history. Transitional provisions can change the result. HMRC sets out the rules for people leaving the UK.

That matters when someone tells me they are moving to a country with no inheritance tax. The destination’s rules are one part of the assessment. They do not, by themselves, switch off the UK’s rules.

Equally, being outside the long-term residence test does not mean every asset escapes UK IHT. UK assets can remain relevant, subject to the applicable exclusions. See HMRC’s guidance on estates with overseas connections.

One family, several countries to consider

Imagine a couple with a £900,000 UK home, a £450,000 overseas property and £650,000 of investments. Their pensions are worth another £800,000. One child lives in the UK; another has settled overseas. This is a hypothetical example, not a client case.

The assets outside pensions total £2 million. Including the pensions takes the family’s combined wealth to £2.8 million. Neither figure is a taxable estate calculation: ownership, who dies first, beneficiaries, exemptions and the pension arrangements all matter.

What those figures show is why I would review the whole plan. I would want to know whether the couple intend to keep the UK home, how long each has lived in the UK, where the investments are legally situated and how their wills and pension nominations fit together.

I would also check the position of the child overseas. Some countries look at the recipient’s circumstances as well as those of the person leaving the wealth. France, for example, has domestic rules under which an heir’s tax residence and residence history can bring overseas inheritances within scope. Treaty provisions may override those rules, so a French connection does not automatically mean a second bill. French tax authority: taxable inherited assets · How succession treaties affect the French rules.

Could the same wealth be taxed twice?

It can fall within more than one country’s rules. That does not mean simply adding their headline tax rates together.

A relevant inheritance or estate tax treaty may allocate taxing rights or provide relief. Where no treaty applies, unilateral relief may be available. The asset, the particular foreign tax and the evidence of tax paid all need checking. HMRC’s double taxation relief guidance.

This is where coordinated advice earns its place. I can bring the financial plan together and work alongside the relevant legal and tax specialists, so decisions about investments, gifting and retirement reflect the countries involved.

Use the map to start with your family’s geography

Try looking up where you live, where you own property and where your intended beneficiaries live. Read the country overviews with your own family in mind: what needs checking before a move, a gift or a change to a will?

Which countries are part of your family’s story?

Explore inheritance tax and succession considerations across the countries connected to your life.

Explore the Inheritance Tax Map →

The map provides country overviews. It does not calculate a personal liability or determine which country can tax your estate.

What would I review first?

I would start with any major decision already on the horizon: retiring abroad, selling a property, helping a child or drawing more from a pension. Those decisions give us a practical timetable.

The pension reform is a reason to revisit withdrawal and inheritance assumptions, rather than automatically empty a pension. Drawing money can create an income tax cost, and you still need enough to support your own retirement. My cashflow planning work helps establish that foundation before we consider what can comfortably be passed on.

For internationally connected families, I see this as part of Strategic Financial Planning: understanding the family’s aims, identifying the relevant rules and making decisions in a sensible order.

Does your inheritance plan fit your family’s world?

If you have assets or family overseas, or an older plan that needs revisiting, I would be happy to talk through where to start.

Book a free consultation →

A free initial conversation with me about your circumstances and priorities.

General information, not personal tax or legal advice. Your treatment depends on your circumstances and the rules in each relevant country.