Articles & Video
Complex offshore structures – traps and pitfalls: a practical guide
There has been a growing trend over recent years for the development of bespoke and complex holding structures to accommodate the needs and sensitivities of ultra-high net worth individuals. Often, the clients originate from civil law jurisdictions and as a consequence are unfamiliar with trusts and the fiduciary relationship created. There is (understandably) suspicion.
I can see clearly now…
In recent years, there has been a positive deluge of reporting initiatives affecting UK individuals, entities and structures with a UK connection. Some of these have come from the USA (so-called “FATCA”), some from the OECD (the Common Reporting Standard), others from the EU (as a result of the 4th Anti Money Laundering Directive) and others are simply ground-breaking initiatives by the UK government.
Tax Reform - Estate and Gift Tax Update
Following President Trump’s signing of the Federal tax bill on 22 December 2017, the effective lifetime Estate and Gift Tax exemption for US citizens & residents (domiciled) has increased from $5.49m in 2017 to approximately $11.2m per individual (approaching $22.4m for US citizen or US domiciled married couples) with effect from 1 January 2018. The inflation adjustment factor has not yet been finalised.
Over Baked - New tax laws which have been introduced to UK residential property
Robert Pullen considers the multitude of new tax laws which have been introduced to UK residential property over the past five years, and looks to the future.
Buy-To-Let Landlords: Yet Another Stealth Tax?
Over the last couple of weeks there has been much discussion over the possibility that Buy-To-Let landlords may find themselves subject to income tax at rates up to 45 per cent on any gain they make when disposing of a property, instead of capital gains tax at 18 per cent or 28 per cent. HMRC has provided reassurances but the legislation needs to be far clearer
Has The Treasury Misled Taxpayers?
In the Finance Act 2014 the Government introduced anti avoidance provisions called Pre Owned Asset Tax which charged an income tax charge on taxpayers who had entered into a ‘double trust scheme’ to avoid an inheritance tax on their own homes. Many of these people had entered these schemes confident that they were within the law, relying on Counsel’s opinions and taking advice from top ranking lawyers.
ATED CGT & NRCGT: FAQs
In anticipation of the inheritance tax changes, which the Government has confirmed will come into force in April 2017, many individuals and advisers are looking at bringing UK residential property holding structures to an end.
The reason for getting UK residential property out of such structures (de-enveloping) is that corporate structures will no longer provide any inheritance tax protection for UK residential property once the changes come into force. This could leave clients in a "worst of all worlds" situation where:
Principal Private Residence Relief: Time to Rebuild?
Tax reliefs and their use continue to come under scrutiny, and Principal Private Residence (PPR) relief from capital gains tax is currently in the firing line. A recent National Audit Office (NAO) report highlighted “scope for wide-scale misuse” and called for more scrutiny, in respect of PPR in particular, due to the £18bn cost to the Exchequer each year. But what is PPR, has it gone wrong and, if so, how can we fix it?
UK Residential Property: All Change For Non-Doms & Foreign Owners
Those who own UK residential property through overseas structures are likely to find that their tax position will change and should consider whether their structure is still appropriate
10 Key Points In Relation To The New Higher Rates Of SDLT
With the new higher rates of SDLT of 3% above current SDLT rates now in force from 1 April 2016, we highlight ten key points in relation to these new rates.
What ‘Brexit’ Could Mean For International Owners Of UK Property
With the referendum being held tomorrow (Thursday 23 June) to decide whether the United Kingdom should remain in or leave the European Union (EU), we highlight the possible implications for international owners of UK residential property. - See more at: https://www.bdb-law.co.uk/blogs/international-ownership-of-uk-property/51-what-brexit-could-mean-for-international-owners-of-uk-property/#sthash.FXeek3ZL.dpuf
ATED changes for 2016
From 1 April 2016, properties worth over £500,000 will be brought into the scope of ATED. However, it is worth remembering that the relevant valuation date is generally 1 April 2012 (or the date of acquisition if later). For the chargeable period beginning 1 April 2016, the annual chargeable amount for the new band will be £3,500.
When is property added to a settlement “excluded property”?
The decision of Mann J. in Barclays Wealth Trustees (Jersey) Ltd and Michael Dreelan v HMRC EWHC2878 (Ch) answers an important question regarding what is excluded property for purposes of the Inheritance Tax Act 1984 s.48(3).