TLDR: Retiring abroad and the ten-year inheritance tax tail

Moving abroad does not take your estate out of UK inheritance tax straight away.

  • Since 6 April 2025, UK inheritance tax on your worldwide estate depends on being a long-term UK resident — UK resident in at least 10 of the previous 20 tax years.
  • Leave the UK and you stay in scope for 3 to 10 tax years. Someone who has lived here all their life carries the full 10-year tail.
  • The year you leave counts as a full year of UK residence.
  • UK assets — rental property, UK company shares — stay inside UK inheritance tax wherever you live.
  • There is no inheritance tax treaty with Spain or Portugal.
  • If you moved to the UK from abroad, you are caught from your 11th tax year here.

Keep a record of your UK days, plan before you move, and review your Will so it works in both countries.

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