UK government intends to increase the IHT-exempt amount that a UK-domiciled individual can transfer to their non-UK domiciled spouse or civil partner. The government similarly intends to allow individuals who are domiciled outside the UK and who have a UK-domiciled spouse or civil partner to elect to be treated as domiciled in the UK for the purposes of IHT. (Finance Bill 2013) (31)
Comments: It is understood that the change is being introduced by the Treasury to avoid a legal challenge from the EU. Germany has recently changed the taxation of non-domiciled person`s estate in view of the decision of the European Court of Justice (ECJ) - Vera Mattner v. Finanzamt Velbert, C-510/08.
