London: +44 (0)20 7236 2601
St Albans: +44 (0)1727 869141
Rickmansworth: +44 (0) 1923 771010
Milton Keynes: +44 (0)1908 605552

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
Author: Cathy Corns

SHARE THIS

Articles from this Author

Contact Business Service Partners

Choose from the drop down menu below to select a Partner to contact.

Tweet

We enjoyed tea and cake with Flo and presented a cheque to @willenhospice for proceeds of #timefortea pic.twitter.com/uDUvt3cOJw

Our latest edition of UK Inward Investment - what are the opportunities for you, is out now bit.ly/2xB0cun click to read more

Follow

LinkedIn

For the latest Mercer & Hole news, visit our LinkedIn page mercer-&-hole

Click here to follow us on LinkedIn