Changes to IHT affecting Jersey wills

14th April 2025

Image: A domicile in the British isle

A domicile in a British isle? - a little Isle with a big domicile

Whether or not you benefit from a Jersey domicile may have changed since the 6^th of April 2025. Do you know where you are domiciled and have you elected a domicile in your will? If you don’t know and you have lived in the UK or have assets there, you should get some legal advice.

Domicile is a person’s home for legal purposes. It affects your tax liability for your world-wide assets. Even if you were born and have remained in Jersey, it could affect your inheritance if family members are UK based.

Domicile impacts what happens to your finances on death. For years when drafting Jersey wills, many clients will have been advised to include that they were domiciled in Jersey, where we do not have inheritance tax (IHT). This provided some evidence of domicile but was not fool proof. Famously Richard Burton was considered domiciled in the UK because he had purchased burial plots in Wales for himself and Elizabeth Taylor. As you can state your domicile in a will it is very important that you seek advice when drafting one.

Some people have been scared to move back to the UK even for a short time fearing a considerable IHT liability.

So what now?

Well in simple terms domicile is out and residence is in. When and how long you have lived in the UK determines your tax status. You are a long term resident if you have lived in the UK for ten out of the previous 20 years.

So the good news – if you have lived in Jersey for a good number of years you can now return to the UK for just less than ten years without being caught by UK inheritance tax laws.  

Domicile can also be relevant in family law matters. It is relevant to whether you can get a divorce in Jersey at all. It should be considered when drafting pre-nups. it could influence where you want to live and can affect how much money there is to divide in a divorce.

The Saying Goodbye JEP supplement considers some difficult issues. You may instinctively want to delay estate planning because you are not sure what to do. This inevitably leaves loved ones with uncertainty. This information is simplified for the purposes of the article and you should not rely on it as legal advice. Corbett Le Quesne offers FREE 30 minute information sessions so you ask those difficult questions and consider your next steps. Call or email us on 733030 or privateclientteam@corbettlequesne.com