HMRC focuses on offshore tax evasion

 


Non-domiciled people with property in the UK should be made aware that changes have been made in legislation, in an attempt to eradicate offshore tax evasion.

As from 1 April, any residential properties valued at £2m+ and owned through a company, will be charged tax starting from £15,000.

If you have purchased a UK property through a foreign company, as a way to avoid paying inheritance tax on the value of that property, you should now balance how much inheritance tax you’re hoping to save, against how much new tax you will be charged.

In addition, should you have borrowed funds against the value of the property in order to reduce its value and so minimise inheritance tax liability, HMRC will no longer permit this specific tactic.

By taking action now, you may be able to move the ownership of your UK property into a trust structure, which could protect you against both inheritance tax and the new tax.

Should you be a long term UK resident, you must still declare your overall income and gains, unless you pay tax on a remittance basis.

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