HM Revenue & Customs is cracking down on families that own overseas property over concerns that they could be avoiding inheritance tax responsibilities. With around 250,000 British residents owning property overseas, the clampdown could catch many families who believe they no longer have to pay IHT to the taxman. ‘If you have inherited foreign property and not declared it, the Revenue is saying we are coming after you.
Even if you have failed to pay the tax accidentally you should be worried,’ ICAEW tax faculty technical manager Anita Monteith told The Sunday Times. IHT, which is levied at 40% on assets above £285,000, is extremely difficult to avoid even if a former UK resident attempts to acquire a new domicile. Source: AccountancyAge