can I contact HMRC to settle

[ChimpMaster]

A trust which is settled (paid for) by an employer and one that is settled by you, have completely different IHT rules.

Just wondering, what is the difference and which is better for IHT minimization purposes?

[HMRC made Atlas Shrug]

Just wondering, what is the difference and which is better for IHT minimization purposes?

I sent a letter to HMRC's IHT department asking them this before I settled. HMRC did not want to tell me, they never responded.

[webberg]

Just wondering, what is the difference and which is better for IHT minimization purposes?

Depends also on the trust type.

Without seeing the deed, I can't say.

[EBTwhatwhenhow]

CL5a Settlement Options Form - Why do they ask about domicile?

Just wondering if anyone knows the relevance of the domicile questions on page 2 the CL5a Settlement Options form? The form asks you to complete the domicile questions if you are planning on writing off the loan balance with the trustee after agreeing a settlement with HMRC. Thanks :-)

[webberg]

Just wondering if anyone knows the relevance of the domicile questions on page 2 the CL5a Settlement Options form? The form asks you to complete the domicile questions if you are planning on writing off the loan balance with the trustee after agreeing a settlement with HMRC. Thanks :-)

Makes a difference to IHT calculations.

Non domiciled people are unlikely to pay IHT until they have been here (I think) 14 out of 15 years.

[EBTwhatwhenhow]

Makes a difference to IHT calculations.

Non domiciled people are unlikely to pay IHT until they have been here (I think) 14 out of 15 years.

Thanks webberg. All the best.

[Headinthesand27]

Makes a difference to IHT calculations.

Non domiciled people are unlikely to pay IHT until they have been here (I think) 14 out of 15 years.

This may have already been brought up subsequently (sorry) but just thought I’d add my 2c worth.

I’m non domiciled and non resident when loans will be written off and HMRC insist that I owe IHT. Not sure why and getting any bit of clarity from them is like getting blood out of a stone.

Does anyone know more about this at all??

[webberg]

This may have already been brought up subsequently (sorry) but just thought I’d add my 2c worth.

I’m non domiciled and non resident when loans will be written off and HMRC insist that I owe IHT. Not sure why and getting any bit of clarity from them is like getting blood out of a stone.

Does anyone know more about this at all??

Perhaps at the time the loans were made you were resident?

If so, losing your UK resident status could be a trigger.

IHT also tends to be driven more by domicile than resident status. These are different and distinct states.

Domicile is usually something you are born with. Initially it would be your parents' domicile status and as you obtain your majority, it's where you consider your home to be.

It is based on a longer term test than resident status and is usually very difficult to change.

Hence the comment above that for IHT purposes being tax resident in the UK for 14 out of 15 years (I think this has varied from time to time) is enough to make you domiciled for IHT purposes.

If you have recently left the UK or are planning on being out of the UK at the time of the write off, that 14/15 rules may still catch you.

[Headinthesand27]

Perhaps at the time the loans were made you were resident?

If so, losing your UK resident status could be a trigger.

IHT also tends to be driven more by domicile than resident status. These are different and distinct states.

Domicile is usually something you are born with. Initially it would be your parents' domicile status and as you obtain your majority, it's where you consider your home to be.

It is based on a longer term test than resident status and is usually very difficult to change.

Hence the comment above that for IHT purposes being tax resident in the UK for 14 out of 15 years (I think this has varied from time to time) is enough to make you domiciled for IHT purposes.

If you have recently left the UK or are planning on being out of the UK at the time of the write off, that 14/15 rules may still catch you.

Thank you for your reply webberg.

Just to clarify, when the loans were made I was non UK domiciled and when I finally settle & write off the loans I will be non UK resident. I was only in the UK for less than 5 years (departed in 2012).

My understanding was that iht will not apply in this scenario?

[webberg]

Thank you for your reply webberg.

Just to clarify, when the loans were made I was non UK domiciled and when I finally settle & write off the loans I will be non UK resident. I was only in the UK for less than 5 years (departed in 2012).

My understanding was that iht will not apply in this scenario?

What is the source of your understanding?