Legal & tax
Did you forget to pull up the drawbridge? Most people who have lived abroad for a while - or even a number of years - get to feel that they are absolutely safe from paying United Kingdom and Ireland inheritance taxatation (AS WELL as that of SPAIN) - BUT THEY ARE NOT. It is becoming an ever more serious and 'looming' problem - as the UK government has now created a task force to 'grab' inheritance taxes from ex-pats who own property abroad - and even the beneficiaries of those who have already died abroad. Furthermore - it has to be said - this problem that is made more dangerous - for all English speaking people owning property in Spain - by some local - well meaning, but not well informed, professional advisors - who give re-assuring prophesies to their English speaking clients - that are simply not correct. Quill does not wish to fall out with anyone in the local community - but - in this situation wrong information is very expensive to those who follow it, rather than to those who sell it. If - for example you have heard, or have been told, that '. . .if you only own assets in Spain then the UK can not touch you for inheritance tax. . . ' - then you have been seriously misled and require alternative advice. Or - if you have heard and are relying upon the idea that '. . .if you only own assets in Spain then you can
only write a Spanish will. . .' - then - your family is on course to lose £100,000 in unessesary tax to the UK - on top of that which you must pay in Spain - because a Spanish will makes it impossible for you to avoid UK inheritance tax your family otherwise might never have had to pay. If you are English speaking - without a valid Will covering your assets in Spain - relying upon the sort of vague statements above - then you MUST - for the sake of your family - obtain a second opinion. A copy of the Sunday Times of September 10th announcing upon this very subject (see advert below) would suffice - or a visit from Quill Wills - and a free copy of Quill's booklet - 'Spanish Asset Wills for English Speaking people' This will set things absolutely straight.
...it is almost impossible to dodge UK Inheritance tax... Even if you have moved abroad permanently and completely it is almost impossible to dodge UK Inheritance tax - which is 40% of most of your worldwide assets without expert advice from UK law experienced advisors also familiar with Spain's law. UK/Eire law (and the world agrees) says a child takes the domicile of its parent. It is very hard to change that.
To avoid UK as well as Spanish death taxes a UK/British passport holder after the relevant taxable event (your death!) - your family must convince the UK authorities that you no longer regarded the UK as your home! To do this you must at least sell all UK property close all UK bank accounts and credit cards and insurances - and arrange to be burried overseas - just to start. It is far easier to accept that you are a UK or Eire national - because that is what it says on your passport - and to write Quill wills that reduces UK/Eire inheritance tax - and take other measures, if neccesary, to eliminate UK/Eire and Spain inheritance and other taxes alltogether.
By Simon Harris F.LLA.FWA
Consultant
Taxman targets overseas homeowners
The Revenue is getting tough with thousands of people who have bought property abroad. A spokesperson from the Institute of Chartered Accountants in England & Wales said: “If you have inherited foreign property and not declared it, the Revenue is saying we are coming after you!” The Sunday Times, September 10, 2006
Hundreds of thousands of families with overseas homes face greater scrutiny from the taxman after the UK government launched a crackdown on foreign property recently, that Ireland and others are set to follow. Even families that have settled overseas could face an official probe: whilst most imagine that once they have emigrated they are safely out of the clutches of the taxman, the truth is that many will still have to pay inheritance tax. Talk to us for advice on the recent changes to the law which might affect you. From 150€ Quill can create you a cast iron Will and/or Shelter - which will protect you from the ravages of taxation both in your own country and in Spain. Call us today, you’d be glad you did!
Telephone Jenny Harris on +34 928 346 544 or +34 679 278 737 for information. read more online at www.quillwills.net A Quill Group Company
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Spanish Office: Calle Argentina 9, San Andres 108, Costa Teguise 35508, Lanzarote, Las Palmas, España Tel: +34 928 346 544, Fax: +34 928 346 540, Email: jenny@quillwills.net | www.quillwills.net