Inheritance Tax

Does the £2 million taper threshold take account of non-UK property when valuing the estate of a non-UK domiciled individual?

Hi,
Please contact the Inheritance Tax team for advice.
Inheritance Tax: general enquiries
Thank you

I am single with no children and would like to include my 2 nephews and 1 niece in my will. for example, if my assets include a house worth £550,000 (no mortgage) where I’ve lived for over 30 years and savings of around £20,000. Option 1: One of my nephews and my niece live in India and are Indian tax residents. My other nephew is a UK resident and subject to UK taxes. If I divide my assets equally between all three, how will inheritance tax (IHT) be applied? Specifically, will only the UK-resident nephew pay tax on amounts exceeding the £325,000 threshold, since the other two are non-UK residents? Option 2: If I decide to leave my house as a gift to my nephew and niece in India (non-UK residents), will they still need to pay inheritance tax? Is it possible to gift UK property to people living abroad without incurring IHT? I’ve read on the government website that non-UK residents usually don’t pay IHT on UK assets. Here’s the reference link: https://www.gov.uk/tax-uk-income-live-abroad/selling-or-inheriting-assets#:~:text=a%20UK%20resident-,Selling%20or%20inheriting%20assets,assets%20located%20in%20the%20UK

Hi,
Please contact the Inheritance Tax team for advice.
Inheritance Tax: general enquiries
Thank you.