Commentary

I12.707 Government securities

IHT, trusts and estates

I12.707 Government securities

I12.707 Government securities

Expatriates working abroad have the opportunity during the period of non-UK ordinary residence to acquire FOTRA securities which are exempt from inheritance tax whilst in their beneficial ownership. Virtually all government securities are now within this category and these can therefore be acquired by those living overseas specifically for the purpose of transferring them into a family trust without any inheritance tax liability arising. Once they are in the ownership of the trustees, they will cease to be exempt securities if the trust has any beneficiaries resident in the United Kingdom. Therefore other planning will be required

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