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Family & Relationships3 mins ago
Inheritance tax
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Does anyone know of a country or state where inheritance tax or something similar does not apply. A civilized place would be much preferable. Also would you still be liable for UK inheritance tax if you returned?
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It is not as easy as it sounds. Inheritance tax was primarily introduced to stop the large estate owners accumulating a vast proportion of the country's wealth. The problem is it is now catching working people who's main asset is a modest house. Labour - the so called party of the working class - has deliberately kept the allowances low to make this a cash cow for their other loony policies.
Guernsey has NO IH.
All that is required for residence is the purchase of an "Open Market" house (usually over �500,000).
They also have no VAT,
no Capital Gains Tax.
A fixed rate of 20% Income Tax.
No Stamp Duty (abolished 2001).
No Capital Transfer Tax.
and they speak English too! LOL.
PS:~
This is from The States of Guernsey (Guernsey Government) Webpage:~
Since 1960, companies and individuals have paid income tax at the rate of 20%. There is no separate corporation tax. Guernsey levies no capital gains, inheritance, capital transfer, value added (VAT / TVA) or general withholding taxes.
All that is required for residence is the purchase of an "Open Market" house (usually over �500,000).
They also have no VAT,
no Capital Gains Tax.
A fixed rate of 20% Income Tax.
No Stamp Duty (abolished 2001).
No Capital Transfer Tax.
and they speak English too! LOL.
PS:~
This is from The States of Guernsey (Guernsey Government) Webpage:~
Since 1960, companies and individuals have paid income tax at the rate of 20%. There is no separate corporation tax. Guernsey levies no capital gains, inheritance, capital transfer, value added (VAT / TVA) or general withholding taxes.
PPS:~
This is from what I have read on several Guernsey Tax sites.
To be sure of not paying UK Inheritance tax on property in the UK it is best to be "domiciled" in Guernsey.That is in effect to cut all ties with the UK.This seems to make all properties etc of the domiciled person come under Guernsey Law.
If you are "Non Domiciled" that is not actually a Guernsey citizen but just living on Guernsey,then any UK property would probably have to be vested in a company/trust set up on Guernsey.This is not difficult as there are many advisors on Guernsey.
Of course the first option is the easiest,as the second though not difficult requires much more setting up etc.
This is from what I have read on several Guernsey Tax sites.
To be sure of not paying UK Inheritance tax on property in the UK it is best to be "domiciled" in Guernsey.That is in effect to cut all ties with the UK.This seems to make all properties etc of the domiciled person come under Guernsey Law.
If you are "Non Domiciled" that is not actually a Guernsey citizen but just living on Guernsey,then any UK property would probably have to be vested in a company/trust set up on Guernsey.This is not difficult as there are many advisors on Guernsey.
Of course the first option is the easiest,as the second though not difficult requires much more setting up etc.
My advice still stands,
If possible move to Guernsey,and set up an "offshore" trust.
This would (probably) allow the beneficiaries of the person to receive tax free sums from the will.
Of course he/she would have to consult a Guernsey Tax Advisor first.This could be done by phone or email,it doesn't need the person to actually go to Guernsey.
Of course you might feel that it it to late for the person to relocate?
There are ways (with the person staying in the UK to avoid IH.However,they were severely tightened over the last few years.if the person has this much money,they really need to consult a GOOD solicitor,who specialises in offshore/avoiding tax.
If possible move to Guernsey,and set up an "offshore" trust.
This would (probably) allow the beneficiaries of the person to receive tax free sums from the will.
Of course he/she would have to consult a Guernsey Tax Advisor first.This could be done by phone or email,it doesn't need the person to actually go to Guernsey.
Of course you might feel that it it to late for the person to relocate?
There are ways (with the person staying in the UK to avoid IH.However,they were severely tightened over the last few years.if the person has this much money,they really need to consult a GOOD solicitor,who specialises in offshore/avoiding tax.
Thank you especially Mr Veritas. It is not easy to find a good solicitor as the definition of good depends upon whom you ask. However, this old chap obviously had some advice from Camelot, then several advisors leapt aboard, and the sharks now circle. It looks like HM revenue are in for a windfall, as he would not re-locate again. He is a very stubborn person, and shuns advice. But thank you all.
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