Answers · UK 2025/26
Are overseas assets subject to UK inheritance tax?
Yes. UK-domiciled individuals pay UK inheritance tax on their worldwide assets, including property and investments held outside the UK.
Full answer
UK-domiciled individuals are subject to inheritance tax (IHT) on their worldwide estate -- including property, bank accounts, investments, and business interests located anywhere in the world. The nil rate band (£325,000), residence nil rate band (£175,000), and spouse exemption apply regardless of where assets are located. For non-UK domiciled individuals, UK IHT only applies to UK-sited assets (though complex deemed domicile rules previously applied to long-term residents -- this was reformed in April 2025 with the new FIG regime and residence-based IHT charge for 10+ year residents). Double tax treaties exist with some countries to prevent both UK and foreign IHT on the same assets.
This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.