UK:
United Kingdom Inheritance Tax Changes - To De-Envelope Or Not?
To print this article, all you need is to be registered or login on Mondaq.com.
Summary:
- the United Kingdom ("UK")
government has recently confirmed that non-domiciles who hold
residential property via an offshore company will be subject to
inheritance tax from 6 April 2017;
- we understand that this is the latest
in a raft of changes to the UK tax regime of non-domiciles designed
to eradicate the previous advantages of owning UK residential
property via offshore companies;
- we are assisting clients
'de-envelope' their UK residential properties (i.e.
transferring the property out of the offshore company's
ownership) by way of voluntary liquidation in both the British
Virgin Islands ("BVI") and the Cayman Islands; and
- given the imminent date of
implementation, and the lead time to complete such transactions, we
are seeing an increase in the number of properties being
de-enveloped by way of voluntary liquidation in both the BVI and
the Cayman Islands.
Click to view advisory
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
POPULAR ARTICLES ON: Tax from UK
Tax – A Shake-Up Looms
Herbert Smith Freehills
Few developments in the tax world have an impact on a truly global scale, but the so-called 'Pillar Two' rules – essentially a global minimum corporate tax – is one of them.
Tax Relief On Debt For Companies
Lubbock Fine
When financing your business operations through borrowing, one of the main considerations will be whether the interest cost is deductible, and to what extent if it is. In the UK...
UK Tax Round Up
Proskauer Rose LLP
Welcome to March's edition of our UK Tax Round Up. This month has seen a number of interesting cases covering a range of issues, from the deductibility of costs against employment income...
Foreign Capital Loss Election For Non-Doms
Lubbock Fine
The complex rules for capital gains tax relief for non-domiciled individuals (non-doms) aren't new, although significant proposed changes have been announced to the non-dom regime in the March 2024 Budget...