On 19 August 2016 the Government published more details about the proposed new rules that will take effect from 6 April 2017.
For non-UK domiciled individuals that own UK residential property the proposed changes are that from 6 April 2017 the value of all UK residential property, including where owned by a non-UK company, will be part of their taxable estate for UK inheritance tax. It is intended this will apply to existing properties as well as those under construction and there will be no exemption for properties occupied as a main residence or used in a rental business from the UK inheritance tax charge.
These proposals are currently under a consultation period until 20 October 2016 after which it is expected further guidance will be published. Anybody who suspects they may be impacted by these proposals should seek advice from their tax adviser as to whether any action is required before 6 April 2017.
If you need assistance with any related matters, please do e-mail Simon at simon.johnson@kpmg.co.uk.