The following Trusts and Inheritance Tax guidance note Produced by Tolley in association with Emma Haley at Boodle Hatfield LLP provides comprehensive and up to date tax information covering:
It is not uncommon to encounter clients with a foreign element to their affairs. When preparing a will for such a client, it is necessary to consider whether an English will is sufficient or whether an overseas will is needed. Even if an English will is valid in a foreign jurisdiction, there may be practical reasons to use an overseas will.
The interaction of laws of more than one jurisdiction can be complex. This note deals only with the law applying in England and Wales (English law) and only considers the broad rules of thumb as to when an overseas will is needed. Advice from overseas is usually required where there is any foreign aspect.
From an English law perspective, an overseas will generally becomes an issue when one or both of the following foreign elements exists:
the client is domiciled abroad
the client has property abroad
The English law concept of domicile is explained in detail in the Domicile for UK inheritance tax guidance note. Domicile is determined by many factors but generally the country which a person considers his home and where he intends to live permanently or indefinitely will be his domicile. This may be different to a person’s place of residence or his citizenship. Everyone acquires a domicile at birth. This may change but it is only possible to have one domicile at any time.
The concept of domicile may differ under foreign laws; it is not uniform even across Europe. Furthermore, whilst domicile is a relevant determining factor for wills under English law, other jurisdictions may apply different criteria such as nationality or residency.
The general law of domicile is relevant to determining issues concerning wills and succession. A client’s domicile under the general law may differ from his domicile under tax law. For example, a client may be deemed to be domiciled in the UK for inheritance tax purposes and yet actually be domiciled abroad under the general law.
See the Domicile for
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
The corporate interest restriction (CIR) essentially limits the amount of interest expense a company can deduct from its taxable profits if the interest expense is over £2 million. The actual mechanics of the CIR calculation are highly complex (the legislation is over 150 pages long) and are
This guidance note provides an overview of the steps businesses need to take if aspects of their business change, and as a result, they need to notify HMRC about the change.Changes to name and / or addressIf a business changes its name and / or its address then it is required to notify HMRC of the
Why is this important?Tax-free amountEach individual, whether or not they are resident in the UK, is entitled to an annual exempt amount when calculating the taxable amount of their chargeable gains for the tax year (although see the exceptions below). The annual exempt amount is also known as the
Class 1 and Class 1AClass 1 and Class 1A are the categories of NIC that can be charged on expenses reimbursed and benefits provided to employees. These classes are mutually exclusive. A benefit cannot be subject to both Class 1 and Class 1A NIC. Three requirements must be met before Class 1A NIC is
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.