Unilateral relief

By Tolley in association with Elizabeth Norton at Russell-Cooke Solicitors
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The following Trusts and Inheritance Tax guidance note by Tolley in association with Elizabeth Norton at Russell-Cooke Solicitors provides comprehensive and up to date tax information covering:

  • Unilateral relief
  • Conditions for relief
  • The property
  • The tax credit
  • Unilateral reliefs on lifetime transfers
  • Tax of a character similar to UK IHT
  • How to claim

Unilateral relief may be available as a credit against UK inheritance tax (IHT) where a tax of a character similar to UK IHT has been imposed on property in an overseas territory.

IHTA 1984, s 159

Unilateral relief will apply in relation to territories to which double tax relief does not apply.

Where double tax relief can also apply the provision that provides the greatest relief can be claimed. See the Double tax relief for IHT guidance note.

IHTA 1984, s 159(7)

Some foreign jurisdictions have their own version of unilateral relief, such as Germany. These may be limited to some extent (in the same way as UK unilateral relief).

Conditions for relief

For the relief to apply, tax must be imposed in a territory outside the UK and be attributable to the value of any property, and:

    More on Cross border estates: