Let us all be in zero doubt that I am the original thicko when it comes to finances, taxes etc.

That said, I have been reading that there is "no" Death Duty in Oz. Hmm. There may not be death duty, but do they treat the value of the bequeathed asset (eg a house) as a capital gain in the hands of the beneficiary the following year?

A Government passing up a chance to grab tax somewhere, somehow, sounds too good to me to be true.....

Thanks

Gill

Gill,

In brief, it depends whether the beneficiary of the estate is a tax resident of Australia. If they aren't a "CGT Event" can arise, triggerring a liability to tax.

Best regards.

Hi Alan

Many thanks indeed for this. Wonder what Gordon Brown would say if he was told, "IHT is being abolished."

Cheers

Gill

Gill,

Remember that your liability to UK Inheritance Tax is a function of what is called your domicile, not where you are tax resident - and you can remain domiciled in the UK for many years after you have ceased to be resident.

Domicile is therefore a more enduring attribute than residency - and it is often difficult to acquire what is called a "domicile of choice" in place of a "domicile of origin".

I can sense eyes glazing over, so I'll draw a line here ...

Best regards.

Hi Alan

I do dimly recall being told about 'domiciled' and 'ordinarily resident' for tax-purposes. I've heard both terms, which is a definite start given my woeful ignorance of this subject. I couldn't define either, but I've definitely heard both terms. (How good is that? )

However, as you accurately predicted, my eyes have now glazed over, my brain has gone numb and my ears have gone home. I Do Not Do Tax!!

Cheers

Gill