Still unsure of which IHT form to use?
Below are examples of excepted estates involving non-doms, to demonstrate when PRs are required to file an IHT400 and when it is possible to submit an IHT207 instead.
Adam died domiciled in Australia, where he’d lived and been domiciled all of his life. His estate was predominantly based in Australia and was worth £140,000 in total. However, he owned a plot of land in the UK valued at £50,000. Because Adam’s UK estate consists of assets other than cash and quoted stocks and shares, his PRs will be required to submit an IHT400.
Beatriz was born in Brazil where she lived and had been domiciled for all her life. Her estate consists of her Brazilian residence worth £300,000, her Brazilian bank account had a balance of £20,000 and she owned shares in a UK company listed on the London Stock Exchange worth £30,000. She’d not made any gifts during her lifetime. Although Beatriz’s estate is worth over £150,000, the UK element is only valued at £30,000 and therefore within the threshold to qualify as an excepted estate. Because she’s never been (deemed) domiciled in the UK and her UK estate consists of only quoted shares, Beatriz UK estate qualifies as an excepted estate. Because she wasn’t born and she’d never lived in the UK, and hadn’t made any gifts of UK assets, the PRs of her estate are able to file an IHT207.
Cara was born in the UK, but she’d lived nearly all her life and was domiciled in China. Her estate consists of several Chinese bank accounts with a total balance of £120,000 and a UK bank account with a balance of £20,000. Cara’s UK estate qualifies as an excepted estate. However, because she was born in the UK, her PRs can’t use the form IHT207 and they’ll need to report to HMRC using form IHT400.
Daniel was born in Denmark, where he’d lived and had been domiciled for all his life. His estate consists of several properties, quoted investments and cash in Denmark and elsewhere in the world, with a total value of £3 million. He’d given all his UK properties to his children three years earlier but he still held £25,000 on a UK bank when he died. The estate qualifies as an excepted estate, but because he made gifts of UK assets within seven years of his death, the PRs can’t use the form IHT207 they’ll need to report to HMRC using IHT400. The PRs may also have IHT to pay if Daniel had used all the available allowances during his lifetime.