Trusts for Non-UK Resident and Non-Domiciled Individuals

If you live in England or Wales but have recently moved to the UK, or if you’re a long-term UK resident with international ties, there are important considerations for dealing with your estate after you die.

Assets abroad and international wills

When undertaking estate planning, you must take special care when creating your will if you fall into the following categories:

• You live overseas but have investments in the UK
• You’re a recent UK resident with international assets
• You’re a long-term UK resident with a non-UK spouse or international ties

Assets held in England would have to be administered under English Law. This includes real estate and shares in a UK company. If you own a UK property, it may be preferable to have a UK will in place.

Having a non-UK will to dispose of UK assets can create difficulties such as delays in verifying the foreign will. A foreign will that covers UK assets will need to be valid under the laws of the country it was drafted to be accepted by the UK courts.

If you own assets abroad, it is also important to check that your UK will cover these.

We always recommend that you consult a legal expert in the jurisdiction where your assets are owned when preparing for what happens to your overseas assets after you’re gone.

Inheritance Tax and New Residence-Based Taxation

As of April 2025, the rules surrounding inheritance tax (IHT) and income tax for international individuals have changed significantly. The UK has moved from a domicile-based system to a residence-based system. This means:

1. IHT liability is now determined by your residence status, not your domicile.
2. The remittance basis of taxation has been abolished, affecting how foreign income and gains are taxed.
3. There are new rules for offshore trusts, with changes to how foreign income and gains within these structures are treated.
4. A new four-year foreign income and gains (FIG) exemption regime has been introduced for certain qualifying individuals.

These changes may affect your tax liabilities both in the UK and abroad. It’s possible for assets that form part of your estate to be subject to inheritance tax in multiple jurisdictions.

That’s why it’s essential to get expert advice to ensure you’re paying the right taxes in the right countries while minimising your overall tax liabilities within the bounds of the law.

How Rowlinsons Solicitors can help

Rowlinsons are experts in estate planning and can guide you through the process under the new tax regime. We provide advice for UK residents, non-residents, and those affected by the recent changes to non-domiciled taxation, and we can connect you to a large network of industry-leading experts to ensure you receive accurate and tailored legal advice.

Our goal is to ensure that your estate is tax-efficient, your assets are safeguarded, and your legacy is preserved for future generations, all while complying with the latest UK tax laws.

Our team of Trust Solicitors in Cheshire can help you get advice from specialists in International Trust. We connect clients in Warrington, Widnes, St Helens, Chester, Northwich, North Wales, and across the UK to industry-leading experts from our offices in Frodsham and Sutton Weaver.

Call us today for an initial no obligation call or click here for a call back. We also have meeting facilities in North Wales by appointment.