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

What happens to the estate of a foreign national who dies in the UK?

1UK IHT applies only to UK-sited assets if the deceased was non-UK-domiciled — foreign assets are outside the UK IHT charge for a genuinely non-UK-domiciled person
2Deemed domicile: anyone who has been UK resident for 15 of the previous 20 tax years is treated as UK-domiciled for IHT, meaning their worldwide estate is subject to UK IHT
3A UK Grant of Probate is required to deal with UK property and most UK-sited assets
4Overseas assets will also require administration in the deceased's home country or wherever those assets are held
5The deceased's domicile at death is a critical factual determination and may need specialist legal advice to establish

A foreign national dying in the UK will need UK probate for UK assets. UK IHT applies only to UK-sited assets unless deemed domicile applies (15 of 20 years UK resident). The worldwide estate will also need administration in the deceased's home country.

Foreign nationals living in the UK — whether as recent arrivals or long-term residents — may die holding a mixture of UK and overseas assets. Their estate will need to be administered in two or more jurisdictions, with the UK IHT treatment depending critically on whether they were domiciled in the UK at death.

This guide explains the domicile rules, the deemed domicile trap for long-term UK residents, what UK IHT applies to, the UK probate process for foreign nationals, and how overseas assets are dealt with.

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.

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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.

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