Changes To UK Real Estate Tax (Property Tax)
The UK has, in many ways, been something of an anomaly in historically not taxing non-UK residents on gains on the disposal of UK property interests. Over the years, the Government has introduced a number of Property Tax measures to extend the UK’s scope and making real estate tax quite complicated.
Business Investment Relief: For Non-doms
Business investment relief (‘bir’)allows non-uk monies to be brought to the uk without being subject to uk taxes, providing these are used to invest in a “qualifying business” and a number of conditions are met.
Summary Of Trusts – What Is A Trust
Trusts remain a popular vehicle for tax and succession planning. Set up appropriately, they can continue to form an effective part of UK estate planning. However, this is a highly complex area of tax law and expert advice is of paramount importance.
Non-doms and offshore trusts
Following substantial changes to the UK’s ‘non-dom’ regime, effective from 6 April 2017, individuals who are living in the UK but are domiciled abroad should review their tax affairs ASAP to make sure they are up-to-date, compliant with current UK tax law, and making the most of appropriate planning opportunities for non-doms and offshore trusts.
Business Relief For IHT
Where a UK domiciled individual’s estate is valued at over £325,000 (this is called the Nil-Rate Band, or NRB), their estate will be subject to Inheritance Tax (‘IHT’) at up to 40% on the value over the threshold. Where the NRB is not used in its entirety (for example, all assets pass from one spouse to another on death), the unused NRB passes to the estate’s beneficiaries.
UK-India Tax Treaty IHT Planning
Our client was an ultra-high net worth Indian citizen but who had been residing in the UK for a few decades; so he and his wife were ‘deemed UK domiciled’ individuals at the time they explored and undertook this UK-India IHT planning / UK-India tax treaty planning; their worldwide estates were exposed to UK IHT at 40%!
