Cross-Border Lifetime Gifts - IHT, Retained Benefits & Key Issues

Introduction

Lifetime gifts can be an effective part of inheritance tax planning, but where the donor retains use or enjoyment of the asset, the intended IHT treatment may not be achieved. The position can become more complex where the donor, recipient or gifted property has an overseas connection, particularly where residence, asset situs and succession rules need to be considered across more than one jurisdiction.

This new case-study-led virtual classroom seminar will examine the UK tax and succession issues arising from cross-border lifetime gifts under the residence-based IHT framework. It will focus on outright gifts of money and property, gifts where benefits are retained and the practical steps involved in coordinating advice across jurisdictions. Using worked examples, the session will consider the key questions practitioners should ask before recommending a gift, arrangements that may require further investigation and how to document and implement advice effectively.

What You Will Learn

This live and interactive session will cover the following:

• Ownership and objectives - distinguishing legal and beneficial ownership, identifying the intended recipient and establishing what the donor wishes to retain following the gift
• Cross-border IHT considerations - considering long-term UK residence, asset situs and residence history when advising on gifts before or after a move overseas
• Outright gifts - understanding potentially exempt transfers, relevant exemptions and the IHT consequences if the donor dies within seven years
• Gifts with reservation of benefit - examining continued occupation, use and enjoyment of gifted property, rental arrangements and the steps required to bring a reservation of benefit to an end
• Pre-owned assets tax - identifying when a separate income tax analysis may be required and considering its interaction with the gift with reservation rules
• Wider tax implications - identifying potential CGT and property transaction tax issues and recognising when overseas tax advice should be obtained
• Succession and implementation - coordinating lifetime gifts with wills, considering potential foreign succession restrictions and obtaining appropriately scoped local advice
• Worked case studies - applying the principles to a parent-funded home, a gift of overseas property and a client considering departure from the UK

Recording of live sessions: Soon after the Learn Live session has taken place you will be able to go back and access the recording - should you wish to revisit the material discussed.