What is the basis of Inheritance Tax (IHT) for UK domiciled individuals?

The basis of Inheritance Tax (IHT) for UK domiciled individuals is on worldwide assets. This means that when a UK domiciled individual passes away, all of their assets, regardless of where they are located, are considered in the calculation for IHT. This includes property, investments, bank accounts, and other forms of wealth held both within the UK and internationally.

UK domiciled individuals are subject to IHT on their entire estate, which is in contrast to non-domiciled individuals who may only be taxed on their UK assets unless they choose to be taxed on their worldwide assets. This comprehensive taxation on worldwide assets is essential for understanding how estates are assessed for IHT purposes, affecting estate planning and the potential tax liabilities that heirs may face.