UK Inheritance Tax Changes Prompt British Expats to Review Succession Planning

A significant reform introduced in April 2025 has caused many British expats to reassess the way their wealth and succession arrangements are organised.

The UK has moved away from its established domicile-led inheritance tax regime, replacing it with a framework that gives more importance to long-term residence in the UK.

While the change may initially seem technical, it may carry substantial implications for internationally mobile people and families, especially where assets are held in several countries.

A new UK inheritance tax approach

Previously, domicile played a central role in deciding whether an estate was subject to UK inheritance tax.

Under the updated regime, HMRC now places greater emphasis on patterns of residence and continuing links with the UK when assessing possible inheritance tax liability.

Consequently, some assets once considered outside the reach of UK inheritance tax may require fresh consideration. These may include pensions, UK-based property, investment portfolios and certain overseas-held assets that retain a connection with the UK.

Renewed focus on succession planning

Since many wealth arrangements were established under the former rules, the latest reforms are leading some families to consider whether their existing plans still work as they were originally designed to.

Paul Stannard, Chairman and Founder of Portugal Pathways, said:

“We’re seeing more families increasingly reviewing how the residency-based system may affect long-term inheritance tax exposure and which assets could potentially fall within the UK tax scope.

“Questions are also being raised about whether existing pension arrangements and estate structures continue to function as originally intended.

“Because of this, early and informed review with experienced cross-border advisers has become increasingly important.”

Structured solutions return to attention

As the regulatory environment changes, many UK nationals living abroad are reconsidering planning structures often used to arrange wealth and address inheritance tax exposure across different jurisdictions.

Matt Firman, CEO at St. James Global, who focuses on cross-border wealth planning for internationally mobile UK families, said:

“Structures such as Self-Invested Personal Pensions (SIPPs), Qualifying Non-UK Pension Schemes (QNUPS) and offshore trusts have come back into focus as families explore how they may fit within the new framework.

“These types of arrangements may help in managing exposure, maintaining control over succession planning, and organising internationally held assets more efficiently.

“For families with UK-linked assets or beneficiaries, careful structuring may also help reduce complexity when managing wealth across different jurisdictions. However, the suitability of any approach depends on an individual’s circumstances, which is why many expats are seeking specialist guidance.”

Understanding the changes for British nationals in Portugal

Cross-border estate planning frequently requires a balance between several tax regimes and legal systems. For British nationals resident in Portugal, identifying how the UK’s revised inheritance tax rules could affect them may be an important initial step.

Anyone looking for more clarity may wish to join an upcoming online expert briefing hosted by Portugal Pathways with Matt Firman of St James Global. The session has been developed specifically for UK nationals living in Portugal.

At the live event, the speakers will explore how succession planning approaches are changing under the new residency-based system, how assets held internationally may now be assessed, and the main issues families should address when reviewing their arrangements.

The briefing is scheduled for Wednesday, 18 March 2026, at 10:00 AM (Lisbon Time), and will include cross-border planning specialists who have supported many UK families in Portugal with estate and wealth planning.

Attendees will also have an opportunity to put questions directly to the speakers during the session and receive practical insights applicable to their own circumstances.

To register for Portugal Pathways’ forthcoming webinar, click here.