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UK changes Inheritance Tax Rules for non-doms

UK changes Inheritance Tax Rules for non-doms UK: inheritance tax

The government of GB published more detail information about proposal to change Inheritance Tax for non-doms.

The changes has been claimed based on 2015 budget summer and also permit to prevent avoidance of non-doms from inheritance tax in Great Britain because of using offshore structure.

According to consultative document “people, who do not live in Great Britain in present time using a big amount of advantages as against to another in IHT.”

Any residential property in Great Britain owned by non-dom persons immediate exists in IHT frames. Nevertheless, the government said that it is a standard practice for such persons in Great Britain to provide residential property through foreign companies or at the same way transfer money.

The government are planning to output residential property in Great Britain, the operations provided through foreign structure. This payment will be used as for persons who lives not in UK and for trusts with mediators or beneficiaries who are non-domiciled. The changes will go into force 6 of April, 2017 year.

The government will remove accommodation building in Great Britain owned oblique through offshore structure from current definitions of excepting property provided by the Inheritance Act 1984. Actions in the nearest offshore and other same companies will no longer as without property.

The Government believes that the new report should be justified to the extent possible on certain other residential real estate, which currently exist in the framework of the tax legislation.

Consultation will end on October 20.

Author: Sergey Panov
managing partner Finance Business Service
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