UK assets have always been subject to Inheritance Tax but non-UK assets held in non-UK trusts settled by UK non-domiciled residents have been excluded so far. The Autumn Budget 2024 delivered on the 30th October has removed IHT protection for non-UK trusts from 6 April 2025, but some transitional rules has been introduced which soften its impact. Settlor-interest trusts (trusts where the settlor can benefit from the assets in the trust) established before 30th October 2024. Foreign property held in such trusts, even if the settlor remains a beneficiary after the 30th of October 2024, will be exempt from 40% inheritance tax (IHT) on the death of the settlor. Previous announcements had not made this clear, leading to anxiety that significant numbers of non-doms would emigrate to avoid the charges before they were brought into effect. Nevertheless, all trusts will be exposed to the 10 Year Charging Regime (10 year anniversary and exits charges up to 6% of the assets value) from the date the settlor becomes long-term UK residents (i.e. have been UK resident for more than 10 years out of the previous 20). IHT liability after leaving the UK. It had previously been announced that a ’10-year tail’ would apply to anyone ceasing UK residence after 10 years of UK residence, effectively meaning that they would continue to face worldwide UK IHT exposure for 10 years after leaving the UK. This has been somehow softened, with the length of the ‘tail’ now increasing in line with how long the individual had been UK resident before they left. For those residents between 10 and 13 years, the ‘tax tail’ will exist for a further three years. The tax tail will increase by one year, for each year of previous residence, up to a maximum of 10 (20 years of prior residence).