The following Private Client guidance note provides comprehensive and up to date legal information covering:
Based on a Practice Note originally produced by Tolley and Milestone International Tax Partners LLP and now updated by LexisPSL.
FORTHCOMING CHANGE: As announced at Budget 2018, draft legislation to be included in Finance Bill 2019–20 was published on 11 July 2019 and includes a measure to provide that additions of assets by UK domiciled or deemed domiciled individuals to trusts made when they were non-domiciled cannot be excluded property and are therefore within the scope of IHT. See News analysis: Draft Finance Bill 2019–20—Private Client analysis.
This Practice Note provides an overview of the main anti-avoidance measures that HMRC seek to rely on to prevent the avoidance of inheritance tax (IHT) in the UK. Note that the main body of the IHT rules is covered in several other Practice Notes. These are referenced where relevant. It is important that individuals are aware of the UK tax implications to their estates on their death and of lifetime dispositions, gifts or transfers. The key issues discussed in this Practice Note are:
excluded property rules and domicile
gifts with reservation of benefit (GROB) rules
the pre-owned asset tax
capital gains tax (CGT) liability on certain dispositions or transfers of UK property
same day additions to multiple trusts (pilot trusts)
disclosure of tax avoidance schemes (DOTAS) and related penalties
general anti-abuse rule (GAAR)
See Practice Notes: IHT—business
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