Organising Inheritance and Tax Planning
In a global economy many people are choosing to work overseas, coming from overseas to work in the UK, or leaving the UK for employment in another country. As a result of such a change, it is common for families to have residences or interests inside and out of the UK or in several countries and regions.
The UK taxation regime is particularly complicated if your permanent home isn’t in the UK but you earn an income from a UK source or own assets situated here. Generally, there can be tax advantages for individuals whose permanent home is not in the UK – for example; the benefit of being subject to 40% inheritance tax only in respect of assets situated in the UK. However, your liability for UK tax can be affected if there is a mismatch between yours and your spouse’s domicile (where you are not domiciled in the UK but your spouse is) or you have had a long period of UK residence, which can potentially expose your estate (including worldwide assets) to UK tax even if you and your surviving family are resident and domiciled abroad.
We can help to provide you with:-
- Advice on establishing your UK tax status
- Advice on the income and capital gains while you are here
- Tax planning for your estate to ensure your assets are dealt with in tax efficient manner based on your current residence or domicile, including advice on the effect of the UK ‘deemed domiciled’ rules for inheritance tax
Some examples of international clients we have recently provided multi jurisdictional tax advice to:
- Advising a high net worth Australian resident in the UK on the mitigation of UK capital gains tax following the disposal of a UK land
- Advising a multi-jurisdictional family domiciled in the UK on the mitigation of UK income and capital gains tax for their dependent relatives resident abroad
- Advising a Spanish national on the UK tax implications of multi jurisdictional property disposals in the UK and Spain and working with Spanish lawyers to advise on the Spanish tax implications
- Advising a Singaporean family resident in the UK for the ongoing administration of a UK Trust
- Instructed by the executor of an estate where their father died in Botswana leaving a Botswanan Will that attempts to deal with his worldwide assets including those in the UK.
|Clive Pointon – Chester Office
Partner & Head of Wills, Trusts & Tax