ChiFRA

There is good news for residents in Andalucía – the region has gone from being the most expensive for inheritance tax to one of the cheapest.  

When the new regional budget for Andalucía entered into force on 1^st January 2018, it included a significant change for succession and gift tax.  The aim of the regional government is to protect close family from this tax, especially on death transfers (i.e. inheritances).

Changes to the UK domicile regime have come into force that could prove costly for expatriates.

Following the delays caused by the unexpected snap general election in the summer, the Finance (No.2) Act 2017 received Royal Assent in November, with confirmation that the domicile reforms take effect retrospectively from 6^th April 2017.

Whether you are planning to move to Spain or currently live here and thinking about returning to the UK - even temporarily - these changes could affect your tax liabilities. Make sure you understand what the new rules mean for you and your family.

Was there anything in the UK Budget for expatriates?

For British expatriates, understanding domicile is an important element of estate planning. It is domicile, not residence, that determines your liability for UK inheritance tax. With rates at 40%, UK inheritance tax is one of the most expensivet axes facing British families - and living in Spain does not automatically protect you.