New IHT rules affect expat UK BTL ownersMake Text Bigger
From April 6th families of deceased UK expats will pay 40% inheritance tax on the total property estates assets.
The new rules will apply to expat investors purchasing UK property in an offshore company. Properties purchased in this way will no longer be exempt from IHT when the owner dies.
This makes the rules the same for expats as UK resident investors who are not allowed to use offshore companies to purchase UK property to avoid inheritance tax.
High price growth in London and other regions has seen an increasing number of expats using newly available expat Buy to Let products to invest in UK property hoping to avoid IHT issues for their families.
Many expat investors are unaware of the new rule changes and should now be considering ensuring liquidity on death with life insurance policies in trust, which will help dependents to cover the inheritance tax bill without being forced to sell properties held by the deceased.
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