asia房地產

The United Kingdom (UK) has a unified estate and gift tax called inheritance tax (IHT). IHT applies to the value of an individual’s estate when he or she dies (in which case he or she is deemed to make a transfer of the whole estate immediately before such time) and to certain transfers or gifts made during the individual’s lifetime. The tax applies on the basis of the loss to the donor’s estate that arises by reason of the transfer of value.

Adjustments are made to property that increases or decreases in value by reason of an individual’s death (i.e., life insurance policies that mature on death and form part of the deceased’s estate).

Certain other events give rise to deemed transfers of value (e.g., deliberate depreciatory transactions), and sales at an undervalue or where a person’s interest in certain trusts comes to an end or where a close company (broadly one in the control of 5 or fewer persons) makes a disposition. In addition, certain trusts are subject to 10 yearly inheritance tax charges and charges when an asset is distributed out of trust.

Types of transfer

Essentially 3 types of transfer for IHT purposes. These are:

Exempt transfers

As noted in 4 below, certain transfers, in lifetime or on death, attract special exemptions such as gifts to charities and spouses. These attract no tax.

Potentially exempt transfers (PETs)

These are certain lifetime transfers that only become chargeable if the transferor dies within 7 years of making the gift. Types of gift that fall within this category include outright gifts from one individual to another.

It should be noted that the potential tax exposure, which would arise on death, can normally be insured at quite competitive rates.

Chargeable transfers

These are immediately chargeable and will utilize the nil-rate band (see Section 4 below) and any available annual allowances, with any excess being liable at 20% (and potentially higher taxes if death occurs in the following 7 years). Common lifetime chargeable transfers include transfers to a trust or to a company that is not 100% owned by the transferor.

Transfers on death are fully chargeable at 40% unless specific reliefs are available (e.g., business property relief) or the transfer is exempt (e.g., a bequest to a spouse (to the extent that the spouse exemption is unlimited — see Section 4) or to an exempt person such as a UK-registered charity).

Transfers by non-UK deemed domiciliaries

With respect to the 3 types of transfers set out above, it is important to note that where an individual is non-UK deemed domiciled (as set out in section 2.2), then these transfer rules only apply to assets that are UK situs.

Gifts with reservation

A gift where the donor has reserved or retained some direct or indirect benefit or enjoyment over the property given away is treated as being part of the donor’s estate for tax purposes until the reservation is removed. It should be noted that this does not affect the normal tax consequences on making the gift; although if ultimately this causes potential double taxation, regulations provide appropriate offset to avoid this. For example, a gift to a trust of which the settlor is a beneficiary may trigger a lifetime tax charge at 20% whilst still remaining within the settlor’s estate for IHT purposes. The release of the reservation is regarded as the making of a potentially exempt transfer. These provisions can also be triggered by any informal non-binding arrangement made with the recipient of the gift, to provide a benefit in some indirect way to the donor.

Pre-owned assets charge

Although this is not a transfer tax, this income tax charge depends on whether or not property is included in a person’s estate for IHT purposes. The provisions were introduced to counter planning measures that gave the donor continued benefit from the assets given away, but which did not fall within the gifts with reservation legislation. From 6 April 2005, where a donor has previously owned an asset (either tangible or intangible) and no longer does so, but arrangements have been made to give him or her continued enjoyment of such property, without the asset forming part of his or her estate for IHT purposes, an income tax charge is imposed on him or her, broadly based on the value of the benefit he or she receives. The charge applies where there was previous ownership by the donor at any time since 17 March 1986, and complex rules cover situations where substitutions and replacements have been made by the donee since then. Gifts of cash can also cause the provisions to apply if made within the prior 7 years.

1.2. Gift tax

There is no specific gift tax in UK law although the above sets out circumstances when lifetime gifts can trigger an IHT charge. Additionally, lifetime gifts (other than to a spouse) are treated as disposals for capital gains tax purposes.

1.3. Real estate transfer tax(英國有房地產移轉稅)

The UK levies a stamp duty land tax charge on transfers of land and buildings, at rates ranging from 0% to 7% (for residential properties in excess of £2 million). The duty is charged on the purchaser of the land or property. Gifts of land and buildings for no chargeable consideration do not, however, realize a charge.

As well as this, a special stamp duty land tax (SDLT) rate of 15% is now payable on the acquisition of residential properties above £2m by ‘non-natural persons’, such as companies (which are defined as bodies corporate), collective investment schemes and partnerships where at least 1 of the partners is a company (irrespective of whether these are UK or non-UK entities). These changes may affect many individuals with offshore structures who use Special Purpose Vehicles or offshore trusts to hold UK property and will not be limited to those who have engaged in SDLT planning.

An annual tax charge (known as the Annual Tax on Enveloped Dwellings “ATED”) equivalent to between 0.3% and 0.75% of the property value (but capped initially at a maximum of £140,000 p.a.) will apply to those interests held by non-natural persons from 1 April 2013.

1.4. Endowment tax

There is no endowment tax in the UK.

1.5. Transfer duty

There is no specific transfer duty in UK law (other than for real estate), although the above sets out circumstances when lifetime gifts can trigger an IHT charge.

1.6. Net wealth tax

There is no net wealth tax in the UK. However, an annual ATED charge (mentioned above in Section 1.3) is to apply from April 2013 for residential properties in excess of £2 million held by ‘non-natural persons’.