UK inheritance tax changes impact nearly one million expats in Australia

New UK laws effective April 2025 will allow British citizens living abroad for ten years to avoid UK inheritance tax on foreign assets. This change affects nearly one million UK expats in Australia, who previously faced potential double taxation. Australia has no inheritance tax, meaning estates are not taxed upon death. However, British expats may still incur capital gains tax on Australian properties if they are not classified as Australian residents for tax purposes. The upcoming changes will replace the concept of "domicile" with "residency," simplifying tax obligations for expats. Those who have lived outside the UK for ten years will no longer be subject to UK inheritance tax on their non-UK assets.