Inheritance tax on overseas property
The European Court of Justice recently decided a case, Theodor Jager v Finanzamt Kusel-Landstuhl, regarding tax reliefs on inheritance tax. The Court held that making such relief was made subject to the condition that the asset acquired by inheritance be situated in the national territory constituted a restriction on the free movement of capital contrary to EU law.
This may well have an impact on the UK’s inheritance tax framework. The fact that agricultural property relief only applies to land in the UK, the Channel Islands and the Isle of Man is almost certainly now contrary to European law.
Whilst everyone hopes the government amends the law to ensure that relief applies to land anywhere in the European Free Trade Area, this is obviously not guaranteed. In the meantime, anyone faced with this situation should probably be advised to complete the relevant IHT forms on the basis that relief should be due.
Date: 31st January, 2008
Articles from this Author
20th July, 2017
Uncertain times for winding up transactions
3rd July, 2017
9th June, 2017
27th April, 2017
Government places Making Tax Digital legislation on hold
Contact Business Service Partners
Choose from the drop down menu below to select a Partner to contact.
Our latest edition of UK Inward Investment - what are the opportunities for you, is out now bit.ly/2xB0cun click to read more
For the latest Mercer & Hole news, visit our LinkedIn page mercer-&-hole