Stealth tax on inheritance
George Osborne promised to increase the amount that people can inherit free of tax in two years’ time but has now changed his mind.
Under the current rules, any British citizen who has lived outside the country for 15 years then loses their right to vote in general elections. This is currently being legally challenged by a number of expats.
The Government’s argument for scrapping voting rights is that an expat is out of touch with UK politics after 15 years overseas. Expats argue their assets should also be out of touch from the Government after the same period.
If you are domiciled in the UK inheritance tax is charged on all your assets, wherever they are situated across the world. But if you are domiciled abroad, then inheritance tax only applies to your UK assets.
There is a flat rate of 40 per cent charged on assets above a £325,000 threshold per person.
Ar deVere group we advise on ways to reduce inheritance tax.
Nigel Green deVere Group