New Treasury guidelines will require that residential property be subjected to inheritance tax even if the property is owned offshore. These guidelines add pressure to wealthy UK residents who are domiciled elsewhere; it forces them to consider the benefits of remaining in the UK. The rules will take effect on April 6, 2017 and subject non-domiciled residents to inheritance tax on their residential property. However, the guidelines will allow non-domiciled individuals a grace period until April 2018 to separate their assets.
See Hugo Greenhalgh, UK Inheritance Tax Move to Hit Non-Doms, Financial Times, August 20, 2016.
Special thanks to Joel Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.
