REDUCING INHERITANCE TAX
. . . PROTECTING YOUR LOVED ONES
Have savings and investments that will form part of your estate on death
Want to make sure that you take advantage of any tax breaks in your new country of residence
Want to review your whole financial structure and consider any alternatives to reduce your inheritance tax liability
Love your ISA in the UK but realise it’s no longer tax efficient now that you live abroad and are looking for a tax efficient alternative
Want to see your savings pass tax free to your spouse/civil partner while living abroad
Have a personal pension fund/SIPP/Group personal pension/Stakeholder pension (although these pensions are free of UK inheritance tax, they do not necessarily avoid inheritance tax in your new country of residence).
Want to make sure that your spouse/civil partner isn’t left paying Spanish Inheritance Tax that can be avoided
Want to consolidate your assets, whether it’s property, shares, investments or savings in order to make things easier for your beneficiaries on your death
If ANY of the above statements apply to you, read on …
We come across many clients who have pensions, ISAs and other investments in the UK or elsewhere who don’t realise that they are leaving their loved ones exposed to unnecessary Inheritance Tax in their new country of residence. Unlike the UK, where HMRC differentiate between tax residency and domicile (domicile being important in respect of your UK Inheritance Tax liability) other countries don’t.
For other countries, if you are tax resident in that country, typically you are liable for inheritance tax on your worldwide assets in that country on your death. There is also a difference in how the tax is calculated. In the UK the tax is on the deceased’s estate, whereas in other countries, for instance Spain, the tax is calculated on the amount inherited by each beneficiary and varies dependant upon how closely related the beneficiary is and in which region the deceased lived. As tax efficient as ISAs and other investments can be in the UK, for instance, Investment Bonds, these types of investments are not tax efficient when living abroad … these types of savings and investments leave you exposed to unnecessary tax whilst you’re alive and upon your death, leaving your loved ones exposed to inheritance tax which can often be avoided by making sure your finances are set up in the best way possible.
What are your options to reduce Inheritance Tax?
At Speed Financial Solutions we offer a bespoke service, first considering your requirements and then researching the market to find the best solution to match your needs. If you want to ensure that you are set up in the most tax efficient way in respect of your succession planning when you live abroad, we have the perfect solution, including Spanish Compliant Investments, QROPS and QNUPS where appropriate.
Having a qualified taxation and trust specialist as part of the team allows us to offer guidance to clients who have more complex financial situations such as holding assets in different tax jurisdictions.
Most expats would agree that navigating a foreign tax system can be stressful, even if you have a good command of the language! What is tax efficient in one country is not necessarily tax efficient in another.
Our in-house qualified Taxation and Trust specialist will oversee the advice provided to ensure that the solution we recommend is in your best interest.
Contact us today to find the right solution for you.