Question:
I live in Scotland and am resident there for tax purposes. I own a house in Brisbane, Australia. This is left in my will to my wife. Would she pay inheritance tax (IHT) in either country in the event of my death?
Arthur Weller replies:
I can't advise about Australian tax. But I can tell you that whatever you leave to your wife will not be subject to IHT in the UK because of the 'spouse exemption'; see HMRC’s Inheritance Tax Manual at IHTM11031. I am assuming that both you and your wife are UK-domiciled.
