Many individuals who leave the UK assume that they automatically cease to be within the scope of inheritance tax:  this is not the case unless they successfully cease to be UK domiciled.  In addition if the individual is non-UK domiciled and they retain UK assets in their own name they will still be within the scope of inheritance tax.

For those individuals who move to Cayman the UK may seem a distant memory; however, care needs to be taken when creating trusts or making gifts because unless the individual has acquire a domicile of choice in Cayman, a 20% inheritance tax charge could arise.  This is particularly an issue for lawyers and accountants who create trusts for asset protection or for their children.  With careful (albeit simple)planning such tax charges can be avoided.

AT HOTCHKISS we can advise you on your inheritance tax exposure and your domicile status.