Equiom tax seminars highlight implications of UK Autumn Statement
Wednesday 22 February 2017
Two recent tax seminars hosted by Equiom Solutions, at the Royal Yacht Hotel in Jersey on 1 February and the Old Government House in Guernsey on 2 February, saw leading members of the business community and other guests gather to hear presentations from the company’s tax specialists. Speakers covered topics relating to various tax changes discussed in the recent UK Autumn Statement that could have a significant impact for Channel Islands residents with assets in the UK.
The event programme began with a presentation on returning UK non-domiciliaries by Equiom Solutions Managing Director, Helen Woods. Helen initially refreshed the audience with a recap of the Statutory Residence Test (SRT), explaining that for Channel Islands residents it is good news. She stated:
‘Previously there was inadequate legislation around those seeking to cease UK residence making it difficult to provide definitive advice. The SRT has since been introduced and provides more certainty on how those returning to the UK are assessed. In many cases it will enable individuals to spend more time in the UK than previously allowed.’ She went on to describe an individual’s domiciled status and upcoming changes that will affect this status. ‘In the current position, those returning to the UK who had a domicile of origin in the UK and were born in the UK are not exposed to UK Inheritance Tax (IHT) if their assets are held in a trust. However, from April 2017 this will change and these individuals will be fully within the scope of UK Inheritance Tax.’
Senior Tax Consultant Glenn Cassidy then addressed one of the most pressing topics for Channel Islands residents, the proposed UK IHT changes affecting UK residential property. Glenn explained:
‘From 6 April, UK residential property and loans made to acquire UK residential property will be subject to IHT regardless of the owners’ domicile status or whether the property is owned by an offshore company. Equally, if the property is held within a trust, IHT may be charged upon the death of the settlor and on the occasion of a trust 10 year anniversary. Investors in UK residential property should review their ownership structures ahead of 6 April to see what potential IHT exposure may exist and consider alternative strategies to preserve the current IHT protection.’
Equiom Solutions provides tax and estate planning services to Channel Islands residents and businesses. The highly qualified and experienced team offers tax mitigation and estate planning advice as well as outsourced tax compliance services for fiduciaries.