Tax Advice
UK Property Tax Protection
Do you own a property in the United Kingdom? Is the property in the name of a company or trust? If so this information will newly affect you and your family.
The UK government has sought to increase the tax revenue from UK property held through international structures, by introducing a raft of anti-avoidance measures aimed at UK property that is held indirectly and generally by Trusts, Special Purpose Vehicles (SPV), Private Investment Companies (PIC), or similar offshore corporate structures.
This wave of legislation changes has severely limited tax planning options for non-UK domiciled individuals, whether UK resident or non-resident, in respect of UK residential property.
New Tax Tules for Foreign Individuals
From April 6th 2017, changes to tax rules would mean that non-UK domiciles owning UK property indirectly through corporate structures (purchased either before or after this date) would be liable for UK Inheritance Tax (IHT, in some cases this is referred to as ‘death tax’) at 40%.
This is 40% of the total value of the property(s) on death. For example, a £7.5 Million property would roughly have an inheritance tax bill of £2,870,000 that must be paid to the UK Tax revenue (Her Majesty’s Revenue & Customs – HMRC) before the property can be passed to the family.
There are many clients looking to find new ways of reducing the overall effect of the likely UK ‘IHT’ liability. Fortunately, there are some actions that can be taken.
Please view our brochure for further information on the new legislation, the issue it has created and the solution
If you own a UK residential property, and would like further information, or have any questions, please contact us at: enquires@townncountryproperty.com
One key area that the Claremont Group of companies have over 30 years of broad experience, is dealing with family estate & succession. We have complete understanding of the importance in protecting the family estate and having an effective succession plan in place to transfer these assets onto future generations.
At Claremont, we know how complex, confusing and emotional the issues involved can be with estate & succession planning. Our approach is to utilise our process to find out exactly what your wishes are for your family estate for generations to come. We use all the resources available to guide you through the maze of decisions and structuring opportunities that can be utilised to ensure the protection of your wealth.
Asset protection seminars are hosted by Claremont Group Communications, in the UK, and Claremont Wealth all over the world.
Other services available include:
- Trusts
- Wealth Management
- Retirement Planning
- Will Writing