Ask an UK Tax Question, Get an Answer ASAP!
Hello, if you have any questions or need further clarification after reading my answer please let me know.
Thank you for your question..
You say that you have become non resident for UK tax purposes from 4 Apr 2013 and non UK Domiciled for the past 30 years.
First of all, conversion of loan into a gift is possible and it is then regarded as a potentially exempt transfer for IHT purposes. The seven year rule applies to potentially exempt transfers.
The gift in the hands of the recipient is tax free under UK Tax rules.. she will not pay any tax on that money.
As far as tax implications for you are concerned .. your liability to UK inheritance tax will be dependant on your domicile and where your assets are situated.
Once you have moved outside the UK and are treated as non resident and non domiciled in the UK for tax purposes, assets held in the UK only would be subject to UK inheritance tax.
If you did not have any assets in the UK, then your estate would not have to pay any UK IHT.
More information on 'Inheritance Tax when someone living outside the UK dies' is covered here
If you need more information please let me know before you rate my service.
I hope this is helpful and answers your question. I am available for any follow up questions you may have, and you can use the reply button to post your follow up questions to the page. If you are happy and there are no more issues I will appreciate if you would kindly rate the service I provided to ensure I get paid for it.