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Legal analysis by Harneys lawyers

Update: ATED and IHT – Is it time to push the envelope (or unwind the trust)?

Publication Date:
25 August 2016

On 19 August 2016, the UK Government published a second consultation of its proposed changes to the inheritance tax treatment of UK residential property for tax high value residential real estate, including where held indirectly or by non-UK resident and/or domiciled individuals. 

The legislation aims to reform the taxation of non domiciles and will have practical implications for those who purchase, hold or sell UK residential property through offshore structures. 

If you are a foreign domicile person who owns or has an interest in residential property in the United Kingdom – whether or not it is occupied by you, your family, or paying tenants – the proposed changes to the UK's inheritance tax regime may mean that it is time to review your current arrangements with respect to that property – especially if it is held through an offshore company or trust.

This article discusses the potential impact of the new legislation and options for managing your personal wealth and succession planning.