IHT - They Don't Smoke Fat Cigars in Panama Anymore...
Sam Orgill of ProACT Partnership with Inheritance Tax Saving Tips for Overseas Property Owners
Well they don't smoke any cigars in Panama any more. Inadvertent exchange of information has exposed assets owned by those living working and investing abroad. This draws these assets into Inheritance TAx Assessment for there home country. In the UK this means 40%.
Inheritance Tax Changes
Currently there is no worldwide exchange of information on assets between countries including UK and Cyprus. So you could settle a Will for the UK and a Will for Cyprus Property separately and the UK taxman will not know of your Cyprus assets unless he investigates.
From 1st January 2017 international exchange of property and asset information will commence between countries. This will allow IHT assessors to review worldwide assets to ensure those domiciled in that country pay on total estate assets. This will draw Cyprus, Spain, French, Portugal and Greek properties into the UK taxman’s net
If you choose UK law to settle your worldwide will & estate UK inheritance tax may well be applied to worldwide assets.
Cyprus has 0% inheritance tax (IHT) so is a better place to pay inheritance tax than the UK where 40% applies on worldwide assets. This depends on your domicile and how you own assets. Cyprus now define your domicile in law. If you are Cyprus Domiciled you pay 0% IHT.
Your worldwide assets (including Cyprus Property) could be assessed for 40% UK IHT if you settle you Will & Estate under English law.
Free Review – Overseas Property Inheritance Tax
ProACT offer a Free Review of your Wills, title deeds, property assets and identify inheritance tax savings. Whether a Cyprus tax resident or not we can ensure your family is protected and makes tax saving on death.
Expats must make written changes of your Will if you want to use the succession rules of your home country. But consider the impact of inheritance tax at 40% on UK and other worldiwde assets. Including your Cigar plantation in Panama.
Consider who you want to benefit in your Will, Family or Taxman ? is this possible with your current arrangements?
Contact us to book a Free review. CONTACT US
Read more on our website www.proactpartnership.com/blog
ProACT Partnership Expatriate Advice - Tax Saving Expat Experts