The new UK regime, the Cypriot reality and the right to choose your law
Thousands of Britons have settled in Cyprus, drawn by the sun, the quality of life, and a familiar legal system. Yet behind the idyllic lifestyle lies a complex web of legal and tax rules.
The United Kingdom imposes inheritance tax (IHT) under new rules effective from April 2025, while Cyprus, although it has abolished inheritance tax, applies its own succession law which restricts freedom of disposition.
The new UK regime
Until recently, inheritance tax in the UK depended largely on domicile. A UK-domiciled person was taxed on their worldwide assets, while non-domiciled individuals (non-doms) were taxed only on assets situated in the UK.
The ’15/20 rule’ introduced in 2017 meant that anyone who h
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