There is nothing in the UK April 2009 budget that is prejudicial to the continuing implementation and smooth running of any asset restructuring strategy that we promote.In fact if anything, the further pension penalties imposed by the Chancellor will make the A-Day Pension Plan, Remuneration Trust and Employer Funded Retirement Benefits Scheme arrangements of even more interest to clients wishing to maximize pension asset accessibility for immediate use and investment, and to protect gross profit and remove dividend and income tax from their lives. There is no tax free inheritance from spouse to spouse, instead when you die your share of your estate is assessed by the Spanish taxman for inheritance tax and the post-tax value is added to the survivor’s estate, the tax owing lies as a debt until you sell the property or you die yourself and your share (including what you inherited from your spouse which if you remember had already been taxed once) is subjected to inheritance tax.
In the UK you have a £312,000 allowance to offset against inheritance tax, so £624,000 for a married couple – but in Spain it is just €15,957… which is peanuts really!
When you die the inheritance tax has to be paid in full within six months of your death before your beneficiaries can inherit your estate. Your Spanish property is part of your worldwide estate for UK taxation purposes and as you are likely to be UK Tax Domiciled even though you might be resident in Spain your villa will be assessed for inheritance tax in the UK after your death; then, as often happens, another tax bill for your estate to settle may be the result if your worldwide estate exceeds your two UK nil rate bands. Fortunately there are ways to protect your Spanish property from this insidious tax.
Please contact us with your enquiry and you will be contacted by our wealth protection specialist who will be pleased to assist you.
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