The inheritance tax (IHT) exempt amount that a UK-domiciled individual can transfer to their non-UK domiciled spouse or civil partner is to increase.
Currently there is a lifetime limit of £55,000 on the value of assets that can be transferred free of IHT. When the Finance Act 2013 comes into force that cap will be increased to the level of the prevailing nil-rate band (currently £325,000).
Alternatively, individuals domiciled other than in the UK and who are (or were) married or in a civil partnership with a UK domiciled person will be able to elect to be treated as UK domiciled for inheritance tax purposes. Individuals who choose to make an election would benefit from uncapped IHT exempt transfers from their spouse or civil partner.
If you would like any further information on this subject, please contact John Barnett.