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Inheritance Taxes in the United KingdomInheritance Taxes in the United Kingdom

Applicability for Non-U.K. citizen residents.

Paul DeLauro, Senior Vice President

October 18, 2017

10 Min Read
DeLauro

U.S. advisors sometimes are confronted with situations in which a client owns residential real property in the United Kingdom. The question inevitably arises, “How will that property be taxed on my death?” The bottom line? Former planning solutions, such as owning that U.K. residential property in an offshore entity, may no longer avoid or mitigate U.K. inheritance taxes.

U.K. Inheritance Taxes

Inheritance taxes (IHT)1 in the United Kingdom are subject to an exemption amount (established by the Chancellor of the Exchequer and known as the “nil rate band”), which is currently set at £325,000 with a portability provision that increases the exemption to £650,000 for spouses or civil partners.2 The tax is payable at
40 percent on the amount o...

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About the Author

Paul DeLauro

Senior Vice President, City National Bank

Paul E. DeLauro serves as manager of Wealth Planning for City National Bank. Paul and his team provide comprehensive wealth planning services to high and ultra-high net-worth clients of City National including entrepreneurs, professionals (including entertainment), their businesses and their families. With over 20 years of experience in wealth planning, Paul is an expert in multiple areas of wealth transfer planning, financial planning, trust administration, asset protection trust law, and charitable tax planning.

Paul received his undergraduate degree from the University of Colorado, Boulder and his law degree from the University of Denver, College of Law. In addition, Paul studied International Affairs and Economics at the University of London, Birbeck College, and tax law at the University of Denver Graduate Tax Program. Paul is admitted to practice law in the state of Colorado. 

Paul is a frequent lecturer and writer. He has taught at the American Bankers Association Trust School, has published numerous articles on the subject of complex wealth transfer planning, and drafted the State of Hawaii’s Permitted Transfers in Trust Act which permits the use of asset protection and legacy trusts within the State.

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