Is It Time To Push The Envelope (Or Unwind The Trust)?

The clock is ticking towards April 2017 when the UK Government intends to implement the proposals outlined at the Summer Budget on 8 July 2015 on new inheritance tax (IHT) rules on residential property in the United Kingdom held indirectly by non-domiciled individuals or excluded property trusts.

The UK government continues to focus on the taxation of high value residential real estate particularly where such assets are held indirectly or by non-UK resident and/or domiciled individuals. The recent changes together with the 2015 Summer Budget proposals have a number of practical implications for those who purchase, hold or sell UK property. If you are a foreign domicile person and you have residential property in the United Kingdom, whether or not it is occupied by you, your family or paying tenants, proposed changes to the UK's inheritance tax regime may mean that it is time to review your current arrangements with respect to that property. This is particularly so