HMRC have recently released annual statistical updates, one covering non-UK domiciled taxpayers and another covering Inheritance Tax (IHT) and associated reliefs. We summarise some of the key and interesting figures.

Non-domiciled individuals

  • For 2020-21, HMRC estimated that 68,300 individuals claimed Non-domicile status. This is down from 76,500 in 2019-20.
  • Non-domiciled taxpayers paid £7.896bn in Income Tax, Capital Gains Tax (CGT) and National Insurance Contributions in 2020-21 and £7.878bn in 2019-20.
  • It is estimated that at least 10,100 individuals were Deemed UK domiciled in 2020-21, under the new rules introduced in 2017.
  • In 2019-20 (the most recent year for which such data is available), of the 62,900 UK resident, non-domiciled individuals, 44,400 claimed the Remittance basis. The remaining 18,500 were taxed on the arising basis.

Inheritance Tax (IHT)

IHT receipts in 2021-22 totalled £6.1bn, an increase of £729m on 2020-21.

In 2019-20 (the most recent year for which such data is available), 23,000 deaths (3.76% of all deaths) resulted in an IHT charge (2018-19: 22,100).

Other key statistics were:

 

Used by

No. of estates

Value 2019-20

Value 2018-19

Spouse/civil partner exemption

21,500

£13.0bn

£13.8bn

Agricultural Property Relief

1,170

£929m

£956m

Business Property Relief

2,820

£1.86bn* 

£2.53bn

Exemption for transfers to qualifying charities and registered clubs

8,190

£1.6bn

£1.7bn

Residence Nil Rate Band

19,200

£4.14bn

£3.64bn

 

*Including £1.22bn on unquoted shares.

  • The estates of those aged between 75 and 84 accounted for 24% of the total tax liability, with estates of those aged over 85 making up 58%.  
  • Taxpaying male-owned estates had an overall tax liability of £2.36bn, whereas taxpaying female-owned estates had a higher overall tax liability of £2.6bn.

Useful guides on this topic

Non-domicile status, deemed domicile & tax
Who is non-UK domiciled? What does this mean for UK Income Tax, Capital Gains Tax and Inheritance Tax? What reliefs are available to non-doms?

Non-Domiciles Tax Toolkit
This toolkit provides an outline of the tax compliance issues for non-UK domiciled (non-dom) individuals.

Remittance basis (overseas income)
What is the remittance basis? Who can claim it and when? What are the advantages of claiming the remittance basis and how much is the remittance basis charge?

IHT: Transfers of value
What is a transfer of value for Inheritance Tax (IHT) purposes?

Client Briefing: Making gifts & IHT
What gifts can you make without triggering Inheritance Tax (IHT)? What are the rules on making tax-effective gifts for IHT purposes?

IHT: Estate planning checklist
This checklist covers some of the essential planning points that taxpayers should know when planning for their estate and Inheritance Tax (IHT).

External links

HMRC: Non-domiciled taxpayers in the UK

HMRC: Inheritance Tax statistics


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