This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

UK-tax on house in the USA

NonDom41
Posts: 43
Joined: Tue Nov 28, 2017 3:03 pm

UK-tax on house in the USA

Postby NonDom41 » Sun Feb 17, 2019 7:30 pm

I own a house in the USA. A foreigner like me who owns a property in the USA is subject to high US inheritance tax (only $60,000 allowance). In order to bring down these taxes for my son when I die, I have arranged the following:

I gift him a part of the house in the value of $15,000.00 every year. This amount is the annual US-gift allowance. Depending on how long I live this will decrease the taxable house value over time in terms of inheritance tax. This procedure has been approved by the IRS in the USA. However, how is this treated by HMRC in the UK?

A) Is there CGT due? I do not think so because the UK-CGT allowance is GBP 11,700 which is higher than the above $ 15,000.00.

B) However, how about UK-gift tax or any other taxes (income tax?) If at all, gift tax would only be due if I were to die before the 7-year time period elapses, correct?

Can anyone help?

Return to “Capital Gains Tax, CGT”