Since the 2015 budget announcement there has been concern for those with structures potentially affected by the proposed changes.
Here is a good summary of the current situation and on how the changes will take affect. As always with items of such a technical nature, seek professional advice in order if necessary.
It was announced in the Summer Budget 2015 that, from April 6 2017, inheritance tax (IHT) would be extended to offshore structures holding UK residential property that to date have escaped IHT entirely. On 19 August, a further consultation paper was published giving fuller details on the proposed new law. The main types of structures that will be affected by the changes are: Non-UK companies holding UK residential property where the shareholder is a non-UK domiciled individual. Non-UK companies holding UK residential property where the shareholder is a non-UK trust.
