For many UK-expats, there has been a growing need for the avoidance of inheritance tax especially if they consider the protection of their family. One of the best ways to avoid the impending inheritance taxes imposed on UK expats is through a QROPS transfer, one choice is to transfer to a USA QROPS scheme.
Before making the leap into QRPOS investments one of the most important things to keep in mind is that the conservative democrat coalition has introduced quite a few sweeping changes to tax regulation. Of the changes made the most glaringly obvious is that of the taxes on inheritance. The new inheritance tax threshold has been upped from £325,000 to £1 million.
If you or anyone you know is planning on avoiding the inheritance tax it is to be noted that these taxes can only be avoided with the correct planning and should be instituted while you or the person you know is stilling living in the UK.
For residents of the UK, the first £325,000 of an estate is free from IHT. Furthermore, recent rule changes mean that passing an estate to a spouse is now completely free of IHT and both tax-free allowances can be used on the surviving spouse’s death. Therefore, if you are married to a UK national, only estates in excess of £650,000 are likely to incur IHT.
For UK residents who are married to non-UK residents and they do not live in the UK the spouse’s tax-free allowance is only set at £55,000. For a spouse to get the full benefits of inheritance avoidance they will need to be a resident of the UK for three years prior to the inheritance transfer.
However, with some advanced planning, avoiding inheritance tax can be quite easy even if estates are well above this amount.
For British expats who want to transfer to a QROPS in France, Spain, Thailand, and other countries avoiding inheritance tax through a QROPS pension transfer is simple. If you have any commercial property, you can also include this in your QROPS.
Aug 06, 2019 0This is the age of technology and awareness. We all look for different ways by which we can make our life more easy and comfortable. With the latest technology to lead our life to modular kitchens, the human race is living a grand life. In the list of must-have for leisure, we always have a...