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Estate & Inheritance Tax Planning

What is UK Inheritance Tax (IHT)?

IHT is a capital tax chargeable on:

  1. Transfers of assets made during your lifetime
  2. The value of your estate on your death

Who does IHT apply to?

IHT will apply to you if you are either:

  • Not domiciled in the UK but own UK assets, or
  • Domiciled in the UK

For IHT you can also be ‘deemed domiciled’ if:

  • You were domiciled in the UK within the three years immediately before the transfer of assets or your death, or
  • You were tax resident in the UK for at least 17 of the 20 income tax years of assessment ending with the year in which you make a transfer or die

How does IHT Work?

If you are domiciled or deemed domiciled for IHT, all of your assets will be exposed no matter where they are situated.

However, if either you or your spouse are domiciled outside the UK, IHT would only apply to your assets situated in the UK.

There are various exemptions and reliefs available that, with careful planning, can minimise your potential exposure to IHT.

How can Stephen Asher Consulting help?

In conjunction with our UK and US tax return preparation services, if you are an assignee working in the UK, or a UK national working abroad, and you either own or are considering acquiring UK situated assets we can help.

Our IHT planning will include a consideration of how this might interact with your home country estate and capital tax planning and will help you devise a plan that minimises your IHT exposure by advising you:

  • Where your assets are situated for IHT purposes
  • Which of your assets might be liable to IHT
  • Which of your assets may be excluded or exempt from IHT
  • Whether you can take advantage of the non-domiciled spouse exemption
  • How to take advantage of Double Tax conventions or unilateral relief
  • How to benefit from offshore settled property planning opportunities
  • About the timing of remittance of funds into the UK

If you would like any further information, or to discuss your specific circumstances, please call or email Alison Asher.

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