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Where Taxpayers and Advisers Meet

Avoiding IHT with Non Dom parent

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Ernesto
Posts:4
Joined:Sat May 20, 2017 11:18 pm
Avoiding IHT with Non Dom parent

Postby Ernesto » Fri Oct 20, 2017 9:28 am

Hi
My 90 year old father is an Italian born National who lived in uk for 40 years. Moved back over 10 years ago and and as far as I am aware he is non domiciled for UK tax purposes although this may later be challenged.
He has considerable property and liquid assets both in UK and Italy and sadly has made no tax planning whatsoever.
I have LPA in both countries and for now have consolidated all liquid assets into an off shore account. Ie Isle of Man...
I am trying to mitigate UK inheritance tax as am facing a tax bill of around 800k....ouch
Father is currently well but have ruled out gifting the property as I feel it’s a gamble on his time. I was wondering if I could buy the property from my father with funds that he would gift me outside the UK. It would be a simple transaction but wondering how it would be viewed by HMRC. Be grateful for any advice From a tax specialist in this field.
Thanks in advance.
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Ernesto
Posts:4
Joined:Sat May 20, 2017 11:18 pm

Re: Avoiding IHT with Non Dom parent

Postby Ernesto » Fri Oct 20, 2017 9:47 am

[quote="Ernesto"]Hi
My 90 year old father is an Italian born National who lived in uk for 40 years. Moved back over 10 years ago and and as far as I am aware he is non domiciled for UK tax purposes although this may later be challenged.
He has considerable property and liquid assets both in UK and Italy and sadly has made no tax planning whatsoever.
I have LPA in both countries and for now have consolidated all liquid assets into an off shore account. Ie Isle of Man...
I am trying to mitigate UK inheritance tax as am facing a tax bill of around 800k....ouch
Father is currently well but have ruled out gifting the property as I feel it’s a gamble on his time. I was wondering if I could buy the property from my father with funds that he would gift me outside the UK. It would be a simple transaction but wondering how it would be viewed by HMRC. Be grateful for any advice From a tax specialist in this field.
I should add I am UK born and resided here all my life. I have however been informed that I am also an Italian national being the son of Italian parents.
Thanks in advance.
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