With millions of Brits living overseas warned of an inheritance tax shock, experts reveal what you need to know
To help any Brits living overseas who think they may be impacted, International health insurance specialists at William Russell have outlined what inheritance tax is and how it directly impacts expats.
Valerii Evlakhov
8 June 2026
William Cooper, Director at William Russell, comments:““In simple terms, inheritance tax is charged by the UK government when someone dies and leaves behind assets such as property, savings, investments, and personal possessions. These form what’s known as their estate, and above certain thresholds, tax may be due.“The key change in recent UK reforms is that inheritance tax is no longer primarily based on domicile, but on residency. From April last year, if you’ve been a UK tax resident for at least 10 out of the previous 20 tax years, you’re classed as a long-term resident and may be liable for UK inheritance tax on your worldwide assets not just those held in the UK.“This is a significant shift for expats. It means that even after leaving the UK, your global assets can still remain within the UK inheritance tax net for a period of time, known as the ‘tail’, which can extend for several years depending on how long you were previously resident.
“For individuals who leave the UK but fall within this long-term residency definition, the implication is that overseas property, investments, and other assets may still be subject to UK inheritance tax if they die within that tail period.“However, for those who are not classed as long-term UK residents, typically those with shorter or more limited UK residency histories, exposure may be restricted to UK-based assets only, offering more clarity than the previous domicile-based system.“There are also transitional rules and planning opportunities to consider, particularly around timing of departure, asset structuring, and how long-term residency is calculated under the 10/20-year rule.“Ultimately, these changes make it more important than ever for expats to regularly review their residency status and estate planning position. The rules are more transparent than before, but they also mean that assumptions based on leaving the UK alone are no longer enough to determine inheritance tax exposure.”
Subscribe to Relocate Extra, our monthly newsletter, to get all the latest international assignments and global mobility news.Relocate’s new Global Mobility Toolkit provides free information, practical advice and support for HR, global mobility managers and global teams operating overseas.
Read related articles
- Financial wellbeing and resilience – a tool for personal and professional productivity
- Enhancing employee financial wellbeing: why it matters to your organisation
- Wellbeing: What does it embrace and how can it be promoted?
“For individuals who leave the UK but fall within this long-term residency definition, the implication is that overseas property, investments, and other assets may still be subject to UK inheritance tax if they die within that tail period.“However, for those who are not classed as long-term UK residents, typically those with shorter or more limited UK residency histories, exposure may be restricted to UK-based assets only, offering more clarity than the previous domicile-based system.“There are also transitional rules and planning opportunities to consider, particularly around timing of departure, asset structuring, and how long-term residency is calculated under the 10/20-year rule.“Ultimately, these changes make it more important than ever for expats to regularly review their residency status and estate planning position. The rules are more transparent than before, but they also mean that assumptions based on leaving the UK alone are no longer enough to determine inheritance tax exposure.”
Find out more about the Think Global People and Think Women community and events.
Subscribe to Relocate Extra, our monthly newsletter, to get all the latest international assignments and global mobility news.Relocate’s new Global Mobility Toolkit provides free information, practical advice and support for HR, global mobility managers and global teams operating overseas.
©2026 Re:locate magazine, published by Profile Locations, Spray Hill, Hastings Road, Lamberhurst, Kent TN3 8JB. All rights reserved. This publication (or any part thereof) may not be reproduced in any form without the prior written permission of Profile Locations. Profile Locations accepts no liability for the accuracy of the contents or any opinions expressed herein.
