Although the Isle of Man is not part of the UK and does not itself levy Inheritance Tax on estates, it’s not quite as simple as this. Whilst it’s relatively straightforward to cease being a UK tax payer and instead become an Isle of Man tax payer, freeing yourself from UK Inheritance tax can be more difficult and requires much more than just a physical move. In very basic terms you need to demonstrate the intention to move from the UK permanently and settle in the IOM permanently.This is a complex area where professional advice needs to be taken. Even if you take advice and put all necessary steps in place that you have been advised to, you will still be subject to UK inheritance tax on all of your assets for three years from this point. It is also important to note that after this three-year period has passed, you will always be subject to UK inheritance tax on UK based assets, such as UK investment bonds, shares listed on the London stock exchange and property etc. It therefore generally makes sense to reduce your exposure to UK based assets.