International estate planning is arranging your affairs where your assets, your home, or your family sit in more than one country, so that your estate passes as you wish and is not taxed twice. For England and Wales the two central questions are which assets fall within UK inheritance tax, and how any overseas tax on the same asset is relieved.
Since 6 April 2025 the UK has taxed inheritance on a residence basis rather than a domicile basis, which changed who is liable on their worldwide estate (gov.uk, reforming the taxation of non-UK domiciled individuals, as at August 2026, subject to change). This guide sets out how the rules work now, where double taxation relief fits, and why cross-border estates often need a will in each country. It is general information for England and Wales, not advice for any one estate.
What is international estate planning?
International, or cross-border, estate planning covers any estate that touches more than one legal system. Common triggers are owning a holiday home or investment property abroad, holding overseas bank or investment accounts, moving to or from the UK, holding more than one nationality, or having beneficiaries who live in another country. Each country has its own succession and tax rules, and those rules do not always agree on who inherits or who pays tax. The aim of planning is to make sure the pieces fit rather than conflict.
The UK part of that picture rests on inheritance tax, which is charged at a standard rate of 40 per cent above the available tax-free thresholds, reduced to 36 per cent where at least 10 per cent of the net estate passes to charity (gov.uk/inheritance-tax, as at August 2026, subject to change). The nil-rate band is £325,000 and the residence nil-rate band is up to £175,000, both frozen until 5 April 2031 (gov.uk, Budget 2025 Overview of Tax Legislation and Rates, as at August 2026, subject to change).
Residence, not domicile: the 2025 change
The most important change for cross-border estates took effect on 6 April 2025, when domicile stopped being the test for worldwide inheritance tax and was replaced by a long-term resident test. A person is a long-term UK resident, and so within scope of UK inheritance tax on their worldwide assets, once they have been UK tax resident for at least 10 of the previous 20 tax years (gov.uk, as at August 2026, subject to change).
Once that status applies, it does not fall away the moment someone leaves the UK. A tail period keeps worldwide assets within scope for between 3 and 10 years after departure, depending on how long the person had been resident (HMRC Inheritance Tax Manual IHTM47020, as at August 2026, subject to change).
| Years UK resident in the last 20 | Tail after leaving the UK |
|---|---|
| 10 to 13 years | 3 years |
| 14 years | 4 years |
| 15 years | 5 years |
| 16 to 19 years | Rising by one year for each further year, up to 10 years |
Source: gov.uk, Inheritance Tax if you are a long-term UK resident, as at August 2026, subject to change.
Which of your assets fall within UK inheritance tax
Whether an asset is caught depends on two things: where the asset is situated, and whether the owner is a long-term UK resident. UK-situated assets, such as a house in England or a UK bank account, are within the charge whatever the owner's residence position. Non-UK assets are treated as excluded property, and outside the charge, only while the owner is not a long-term UK resident (gov.uk, as at August 2026, subject to change).
| Situation | UK assets | Non-UK assets |
|---|---|---|
| Long-term UK resident (10+ of last 20 years) | Within UK inheritance tax | Within UK inheritance tax (worldwide) |
| Not a long-term UK resident | Within UK inheritance tax | Excluded property, outside the charge |
General position based on gov.uk, when someone living outside the UK dies, as at August 2026, subject to change. Trusts and certain assets follow separate rules.
One further point matters for anyone thinking about pensions across borders. From 6 April 2027 most unused pension funds and death benefits are due to be brought within the value of the estate for inheritance tax, a change announced at the Autumn Budget 2024 (gov.uk, as at August 2026, subject to change). That may affect how internationally mobile savers weigh UK and overseas pension arrangements.
Double taxation and how relief works
Where more than one country taxes the same asset on death, relief exists so the estate is not taxed twice in full. The UK has bilateral conventions for taxes on estates and gifts with ten jurisdictions: the Republic of Ireland, the Netherlands, South Africa, Sweden, the United States of America, Switzerland, France, India, Italy and Pakistan (HMRC Inheritance Tax Manual IHTM27161, as at August 2026, subject to change).
Where a convention applies, it sets out which country has the primary right to tax an asset. Where there is no convention, the UK can still give unilateral relief by crediting the overseas tax paid on an asset against the UK inheritance tax due on the same asset, limited to the amount of overseas tax paid (gov.uk, Inheritance Tax double taxation relief, as at August 2026, subject to change). The order in which reliefs apply can affect the final figure, which is one reason cross-border estates are often worth checking with a qualified adviser.
Wills that work in more than one country
A single English will can dispose of worldwide assets, but that is not always the practical route. Some countries do not readily recognise a foreign will, and some apply forced heirship rules that reserve a fixed share of an estate for close family regardless of what a will says. For assets such as property abroad, many people hold a separate will drawn up under local law, carefully worded so the two wills do not accidentally revoke one another. Aligning a UK will with an overseas one is a specialist exercise, and getting the interaction wrong can delay administration in both countries. Our general guide to how to write a will covers the England and Wales foundations, and cross-border cases build on that with local advice.
Mental capacity planning is jurisdiction-specific too. A lasting power of attorney registered with the Office of the Public Guardian governs decisions in England and Wales, and an equivalent document is usually needed for assets or care decisions in another country.
Common cross-border scenarios
- A UK family with a holiday home abroad. The overseas property is subject to local succession and tax rules, while the whole estate may be within UK inheritance tax if the owner is a long-term UK resident.
- Someone who has recently moved to the UK. Non-UK assets remain excluded property until the 10-of-20-years threshold is met, so timing and record-keeping matter.
- A long-term UK resident planning to move abroad. The tail period keeps worldwide assets within scope for several years after departure.
- Beneficiaries living overseas. The UK charge is generally settled by the estate before assets are distributed, but the receiving country may then apply its own rules.
These are illustrations of how the rules interact, not a plan for any particular estate. If you want to see how this might apply to your circumstances, our estate planning guide sets out the wider picture, and you are welcome to arrange a consultation.
- Long-term UK resident test: 10 of the previous 20 tax years brings worldwide assets within UK inheritance tax (gov.uk).
- Tail after leaving the UK: 3 to 10 years depending on prior residence (HMRC IHTM47020).
- Standard inheritance tax rate 40 per cent, or 36 per cent where 10 per cent or more of the net estate passes to charity (gov.uk).
- Nil-rate band £325,000; residence nil-rate band up to £175,000; frozen until 5 April 2031 (gov.uk, Budget 2025 OOTLAR).
- Double taxation conventions in place with 10 jurisdictions; unilateral relief may apply elsewhere (gov.uk).
Scotland and Northern Ireland
Inheritance tax is a UK-wide tax, so the long-term resident test and the thresholds apply across all four nations. Succession law differs, however. Scotland has its own rules, including legal rights that can entitle a spouse and children to a fixed share of an estate, and it uses confirmation rather than a grant of probate. Northern Ireland has a separate but broadly similar system to England and Wales. Where an estate touches more than one UK nation as well as another country, advice is often needed in each.
Frequently asked questions
What is international estate planning?
International estate planning is arranging your affairs where your assets, home or family sit in more than one country, so your estate passes as you wish and is not taxed twice. For England and Wales the central questions are which assets fall within UK inheritance tax and how any overseas tax on the same asset is relieved. The right approach depends on the countries and assets involved (gov.uk, as at August 2026, subject to change).
Do I pay UK inheritance tax on overseas assets?
It depends on your residence position. Since 6 April 2025, a person who has been UK tax resident for at least 10 of the previous 20 tax years is generally within UK inheritance tax on their worldwide assets, including overseas ones. Someone who is not a long-term UK resident is generally charged only on UK-situated assets, with non-UK assets treated as excluded property (gov.uk, as at August 2026, subject to change).
Has domicile been abolished for inheritance tax?
Domicile stopped being the test for worldwide inheritance tax from 6 April 2025 and was replaced by a residence-based long-term resident test. Domicile can still matter for some historic arrangements and for other areas of law, but for whether an estate is charged on worldwide assets the question is now residence over a 20-year period (gov.uk, as at August 2026, subject to change).
Can the same asset be taxed twice on death?
More than one country can tax the same asset, but relief exists to reduce the effect. The UK has double taxation conventions with ten jurisdictions, and where no convention applies it can give unilateral relief by crediting overseas tax paid against the UK inheritance tax on the same asset, up to the amount of overseas tax paid (gov.uk, as at August 2026, subject to change).
Do I need a separate will for property abroad?
Not always, but many people with overseas property hold a separate will under local law. Some countries do not readily recognise a foreign will, and some apply forced heirship rules reserving a fixed share for close family. Where two wills are used, they need careful wording so one does not accidentally revoke the other. This is general information, and cross-border wills usually involve local legal advice (gov.uk, as at August 2026, subject to change).
If I leave the UK, when do my overseas assets fall outside UK inheritance tax?
Long-term resident status does not end immediately on departure. A tail period keeps worldwide assets within scope for between 3 and 10 years after leaving, depending on how many of the previous 20 years were spent resident in the UK (HMRC Inheritance Tax Manual IHTM47020, as at August 2026, subject to change).