Inheritance and succession issues may be a difficult issue for many British people who live or travel abroad, as it is charged on transfers of worldwide assets by people domiciled in the UK, and transfers of UK assets by people not domiciled in the UK.
Some of these issues were recently addressed by Tracy Storer, a Senior Partner at Chorus Financial, who explained how IHT rules tend to work in Spain, a popular country for British retirees.
She explained: “Inheritance tax in the UK is based on the person’s estate and has a tax-free threshold of £325,000, plus generous allowances for your primary residence.
“In Spain, this is very different and works on a beneficiary-based system, where the tax-free amounts differ depending upon the relationship between the deceased and their beneficiaries – i.e., husband and wife, parent and child.
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