SLI Launch New Trust Range (30/04/2007)

Scottish Life International has just finished revamping their entire trust range. The updated range now includes a gist trust, absolute trust, loan trust, discretionary trust and bare trust.  For each trust in the range, we have provided a downloadable guide to the trust and a case study.

Offshore Amnesty of Tax Payers (25/04/2007)

HM Revenue and Customs have just announced a tax amnesty for holders of offshore bank accounts, a move which could affect over a million people. It is advised that individuals who currently owe tax on money held in their offshore accounts should act now.

HMRC Scraps Tax on Overseas Property (30/03/2007)

The British Government has delivered a considerable tax bonus for British people owning property overseas for private use, by scrapping UK tax on property bought through a company.

ISA Alternatives for British Expatriates (28/02/2007)

An individual savings account (ISA) is a popular savings vehicle for those resident in the UK who wish to save some money tax efficiently. As expatriates, and therefore potentially none UK tax-payers, we should not be investing in ISA’s as we should not be receiving any tax benefits when we are not paying tax in the first place. But why would we want to?

Alternatively Secured Pensions to be Taxed (15/01/2007)

The Chancellor has imposed a 70% tax on assets in Alternatively Secured Pensions that are passed on to dependants on death. This is on top of 40% inheritance tax, making an effective rate of 82%.

The Loss of Tax-Deferred Income? (06/01/2007)

Ever since the Sandler report recommended the abolition of the Section 739 friendly policies, the Chancellor has been threatening to remove the 5% deferred tax rule. Whilst not mentioned in the pre-budget report, there are fears in the industry that Gordon Brown may look to abolish section 739 friendly policies  sooner rather than later.

Bare Trusts no longer tax-efficient where Children are the Beneficiaries (05/01/2007)

Following the 2006 Budget and the subsequent Finance Act, bare trusts have become ’fashionable’ in financial planning circles. However, changes to bare trusts proposed in the Chancellors pre-budget report mean that they will no longer be an efficient option when the beneficiaries of the trust are children.

HM Revenue & Customs announces “blitz” on Foreign Assets (26/11/2006)

HM Revenue & Customs (HMRC) has announced that, for the remainder of 2006, it will be “paying particularly close attention to foreign assets”, reported as forming part of a deceased’s estate.

Inheritance Tax Planning (26/11/2006)

With the UK government’s target of boosting inheritance tax revenue from £3 billion to £10 billion per annum, the implications for British expatriates with an estate in excess of the £275,000 threshold will be significant.

The Loan Trust (26/11/2006)

Loan Trust arrangements are designed to assist those individuals who wish to undertake some inheritance tax planning but do not feel able to make significant gifts.

Using Time Appointment Relief for UK Tax Planning (26/11/2006)

If you plan to return to the UK at some point in the future and have built up your offshore savings and investments to purchase a home on your return or fund your retirement, be prepared for a big tax bill when you need this money.  

The Private Foundation -  looks like a company, acts like a trust (29/10/2006)

A Private Foundation is created when one or more “founders” formalise a document known as a ‘Foundation Charter’. Once registered at the public registry  the “Foundation Charter” creates a new legal entity without need for any further legal or administrative endorsements.

Number of Estates paying UK Inheritance Tax rises 72% (29/08/2006)

The number of estates in the UK paying inheritance tax rose by 72% in the five years up to 2004, according to a study.

Changes to UK Trust Laws (29/08/2006)

Further to our update last month on the changes to trust law in the UK, the Finance Bill received Royal Assent on 19 July and is now the Finance Act. As a result of this, all life assurance policy trusts established on or after 22 March 2006, with a few relatively minor exceptions (mainly bare trusts), will be within the relevant property regime.

Revenue gains access to Offshore Accounts (29/5/2006)

'Should five per cent appear too small, be thankful I don't take it all.' So sang The Beatles in their song Taxman, disgruntled at the 95% top rate of income tax they had to pay back in the 1960s. Now, more than 110,000 UK residents who bank with Barclays are going to get a similar feeling.  

Spanish Property & Inheritance Tax (22/3/2005)
More and more people are investing in Spanish property. Historically, the wise investor has purchased Spanish property through an offshore company to minimise their tax liabilities. However, now this loophole has been closed, it is vital the property purchaser is aware of the potential tax liabilities.

UK Expatriates fear Taxation (14/12/2004)
The Offshore Financial Trade Association (OFTA) reports on a new expatriate fear of an imminent tax hike.

Over 60% of British unaware of Inheritance Tax liability (8/8/2004)
New research shows that more than 60% of people in the UK over the age of 50 have not sought advice about inheritance tax (IHT) planning, and that number rises to over three quarters in Scotland. This despite the fact that the UK IHT threshold now kicks in at a level which will catch many more people than ever due to booming property prices in recent years.