Commenting on inheritance tax on UK residential property held through offshore companies Dermot Callinan, Head of Private Client, KPMG commented:
“The Chancellor has announced previously that measures would be introduced so that both direct and indirect holdings of UK residential property of non-UK domiciled individuals will be within the charge to inheritance tax in April next year. This means that an IHT charge could in future be triggered by a property transaction during an individual’s lifetime, and/or on death if the property forms a part of their estate.
“As no further information was provided in the Budget today, we need to wait a little longer for the final detail about how this change will be implemented, given that this is a significant change impacting high value assets.
“We are seeing individuals who might be affected confirming their current position and carefully calculating how these changes might impact their UK residential property holdings so that, once further detail is announced, they are able to make and implement informed decisions before the new rules take effect.”
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