Main menu

Liverpool:

+44 (0)151 600 3000

Manchester:

+44 (0)161 836 8800

Preston:

+44 (0)1772 823 921

Search form

Search form

A B C D E F G H I J K L M N O P R S T V W Y

Brexit - Private Client matters

Brexit - Private Client matters

Wednesday 6th July 2016

Share this article:

Private Client Law Bulletin - Issue 100

Following the Brexit result we provide an update on the EU Succession Regulation and the issues around Inheritance Tax.
 
The UK had already opted out of the EU Succession Regulation (Brussels IV) some years before Brexit. The Government had felt that it could not implement provisions that harmonised succession laws across the EU as they may have a detrimental impact on lifetime gifts and land registration. The need to appreciate the fundamental impact of Brussels IV on those from the UK with assets in the other parts of Europe and foreign nationals with assets in the UK however remains and cannot be ignored post EU membership.
 
The controversial “emergency budget” referred to by the Chancellor before the Referendum vote was announced apparently included proposals to increase the Inheritance Tax rate from 40% to 45%. This could have led/could lead those with assets above the inheritance tax threshold (£325,000) to make gifts to family earlier than they otherwise might in the hope of surviving 7 years and so reducing the amount to be taxed. The effect of a reduction in the value of estate assets though, if any economic downturn materialises, could have a neutralising effect so far as Government finances are concerned.  Those paying inheritance tax could end up paying proportionately more, so increasing the need to consider timely estate planning.
 
If you would like to discuss any issues about these areas, or for any other matters of concern, please do not hesitate to contact our Private Client team.