Foreign National Dying in the UK: Domicile, IHT, and Probate

Domicile: UK vs Non-UK at Death

The tax treatment of a foreign national's estate in the UK depends entirely on domicile at death:

• Non-UK-domiciled: UK IHT applies only to assets situated in the UK. Foreign assets are completely outside UK IHT. The nil rate band (currently £325,000) and residence nil rate band (£175,000) apply to the UK assets in the normal way
• UK-domiciled: UK IHT applies to the worldwide estate, including all foreign assets
• Deemed UK-domiciled: A foreign national who has been UK resident for 15 of the previous 20 tax years is treated as UK-domiciled for IHT purposes even if they have a genuine foreign domicile of origin and have not acquired a domicile of choice in the UK. This catches many long-term residents who did not take steps to plan their affairs

For a foreign national who has lived in the UK for many years, the question of whether deemed domicile applies is the most important tax question the estate will face. Specialist advice from a cross-border estate planner is advisable at an early stage.

For more on domicile, see our guide on IHT for non-UK domiciles.

What Assets Are Subject to UK IHT for a Non-Domiciliary?

For a genuinely non-UK-domiciled person, UK IHT applies to UK-sited assets. The situs (location) of common asset types:

• UK land and property: UK sited
• UK bank accounts: UK sited
• Shares in UK registered companies: UK sited
• Cash in UK bank accounts: UK sited
• UK government gilts and bonds: UK sited
• Debts owed by UK persons or companies: generally UK sited
• Foreign property: not UK sited
• Foreign bank accounts: not UK sited
• Shares in non-UK companies: not UK sited

The situs rules are more complex for business assets, partnership interests, and certain types of debt. Specialist advice may be needed to determine the situs of particular assets.

UK Probate for a Foreign National's Estate

A UK Grant of Probate (or Letters of Administration if there is no valid UK will) is required to deal with UK property, UK bank accounts above a threshold, and UK-registered shares. The process is the same as for UK citizens, with these additional considerations:

• The application form must state the deceased's domicile at death — if non-UK-domiciled, additional information about the foreign domicile may be required
• If the deceased was domiciled in a foreign country, their succession may be governed by foreign law for movable assets (bank accounts, shares, personal property). The UK Probate Registry may require a statement of the applicable foreign law
• The IHT400 return must be submitted if the estate meets the threshold — only UK-sited assets are included for a non-UK domiciliary
• A foreign will may need to be admitted to UK probate — the Probate Registry can accept a foreign will if it meets certain requirements under the Wills Act 1963 or has been made in a form valid under the law of the place where it was executed

See our guide to applying for probate and complete UK probate guide for the full process. For the documents needed, see what documents you need for probate.

Foreign Assets: Administration in the Home Country

The UK Grant of Probate deals with UK assets only. Overseas assets will require separate administration in each country where assets are held. Options for recognising the UK grant abroad:

• Commonwealth countries: re-sealing of the UK grant is possible in most Commonwealth countries — see our guide on re-sealing a Commonwealth grant
• EU countries: the EU Succession Regulation may apply — see our guide on the EU Succession Regulation
• Other countries: a separate grant or succession proceeding in the local court is typically required, often using the UK grant as supporting evidence

Instructing a local solicitor in the deceased's home country (or wherever foreign assets are held) at an early stage is essential.

Practical Checklist

• Register the death and obtain certified copies of the UK death certificate
• Locate the will — check whether a foreign will also exists
• Take specialist advice on domicile status and whether deemed domicile applies
• Apply for UK Grant of Probate if UK assets require it
• Complete IHT400 return if the UK estate meets the threshold (UK-sited assets only for non-domiciliaries)
• Instruct solicitors in each foreign country where assets are held
• Check whether re-sealing in the relevant country is possible
• Coordinate tax filings in both countries to avoid double taxation

For the UK administration, see our estate administration checklist, our complete UK probate guide, and our guide to documents needed for probate. For apostilling documents, see our guide on apostilling a foreign death certificate.

Get started with Farra for a personalised estate administration task list.