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DeVere Criticizes UK Death Tax Plans On The Living

Thursday, August 14, 2014

The founder of DeVere, a financial consultancy firm, Nigel Green has hit back at a proposal from HM Revenue and Customs (HMRC) to use its new accelerated payment powers to require payment of inheritance tax from living individuals.

Green said that HMRC would force people to temporarily pay their inheritance tax upfront if the person enters into a tax avoidance scheme that falls under the remit of HMRC's Disclosure of Tax Avoidance Schemes (DOTAS) regime. He complained that the proposal would brand taxpayers "guilty until proven innocent," and he warned that "that those who are taking perfectly legal, and indeed sensible, measures in order to mitigate their inheritance tax burden will be unintentionally, yet adversely affected should this come into effect."

Inheritance tax was brought into DOTAS from the 2011-2012 tax year, to detect a specific type of avoidance involving the use of trusts. HMRC plans to expand the coverage of DOTAS, and consequently the scope of its advance payment powers, to schemes entered into during a person's lifetime that are designed to reduce the value of their estate, or arrangements that seek to avoid inheritance tax on lifetime transfers or charges other than "entry charges" on relevant property trusts.

HMRC says that its proposal to expand DOTAS into these areas does not mean that the straightforward use of inheritance tax reliefs and exemptions would be affected. Accelerated payment notices would apply where a chargeable event has occurred in relation to a scheme disclosed under DOTAS. Notices would not be issued automatically.

In May, a DeVere Group poll revealed that reducing inheritance tax liabilities is now the number one long-term financial priority of nearly half of those with UK homes. Green said that the tax was intended to be paid by the super rich, but that rising house prices mean that "millions more will be pulled into the IHT trap."

Green also described inheritance tax as one of the most unpopular taxes, and as "a form of double taxation" on assets that had already been paid for. He said: "Most people would prefer to leave their legacy to their heirs than to the tax authority."

Green's comments are in response to the publication of a HMRC consultation Strengthening the Tax Avoidance Disclosure Regimes on July 31, 2014.

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The Report

Offshore Trusts Guide: Introduction

The History of Offshore Trusts
Development of Professional Competence in the Jurisdictions
What Future for the Trust?
The New Age of Transparency
The Swiss Association of Trust Companies
The Society of Trusts and Estates Practitioners

Offshore Trusts Guide: Jurisdictions

Bahamas

Bahamas: Legal Framework and Formation Rules and Fees
Bahamas: 2006 Private Trust Companies Legislation

Barbados

Barbados: Legal Framework and Formation Rules and Fees
Barbados: Supervisory and Licensing Regime and Fees

Bermuda

Bermuda: Legal Framework and Formation Rules and Fees
Bermuda: Supervisory and Licensing Regime and Fees

British Virgin Islands

British Virgin Islands: Legal Framework and Formation Rules and Fees
British Virgin Islands: Special Trusts Act 2003
British Virgin Islands: The Trustee Act 2003
British Virgin Islands: :Supervisory and Licensing Regime and Fees
British Virgin Islands: New Laws on Private Trust Companies
British Virgin Islands: New Private Trust Company Regulations

Cayman Islands

Cayman Islands: Legal Framework and Formation Rules and Fees
Cayman Islands: Supervisory and Licensing Regime and Fees

Cook Islands

Cook Islands: Legal Framework and Formation Rules and Fees
Cook Islands: Supervisory and Licensing Regime and Fees

Cyprus

Cyprus: Legal Framework and Formation Rules and Fees
Cyprus: Supervision, Licensing and Tax

Gibraltar

Gibraltar: Legal Framework and Formation Rules and Fees
Gibraltar: Legislation, Regulation and Supervision

Guernsey

Guernsey: Legal Framework and Formation Rules and Fees
Guernsey: Trusts Law 2007

Isle of Man

Isle of Man: Legal Framework and Formation Rules and Fees
Isle of Man: Supervisory and Licensing Regime
Isle of Man: Uses Clients and Tax Treatment

Jersey

Jersey: Legal Framework and Formation Rules and Fees
Jersey: Supervisory and Licensing Regime
Jersey: Trusts Amendment Act 2006
Jersey: Foundations

Liechtenstein

Liechtenstein: Legal Framework and Formation Rules and Fees
Liechtenstein: Regulation Supervision and Transparency
Liechtenstein: Characteristics of Liechtenstein Trusts
Liechtenstein: Foundations

Madeira

Madeira: Legal Framework and Formation Rules and Fees

Malta

Malta: Legal Framework and Formation Rules and Fees
Malta: The Trust and Trustees Act 2004

Mauritius

Mauritius: Legal Framework and Formation Rules and Fees
Mauritius: Characteristics of the 2001 Trusts Act
Mauritius: Additional Provisions of the 2001 Trusts Act
Mauritius: Tax Treatment

Monaco

Monaco: Legal Framework and Formation Rules and Fees

Nevis

Nevis: Legal Framework and Formation Rules and Fees

Panama

Panama: Legal Framework and Formation Rules and Fees
Panama: Requirements for Acting as Trust Company in Panama

Seychelles

Seychelles: Legal Framework and Formation Rules and Fees

Turks & Caicos

Turks & Caicos: Legal Framework and Formation Rules and Fees
Turks & Caicos: The Voidable Dispositions Ordinance

Vanuatu

Vanuatu Legal Framework and Formation Rules and Fees




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