Practitioners Zone continued

Question: A friend of mine has a wealthy uncle abroad, who has never lived in the UK. The uncle wants to gift a large sum of money (about £1 million) to my friend and his brother (i.e., his two nephews who are both UK residents and UK domiciled) to help them buy a property for investment. My questions are: 1) Do the nephews need to declare this gift on the tax return or anywhere else? 2) What proof is required to show this is a gift? Does a letter from their uncle abroad suffice, what is the procedure to make this a formal gift? 3) Can the inland revenue challenge this gift, and ask for income tax? In which case, what must be done to avoid paying income tax. Will the inland revenue (do they have the right) to ask for the uncle's bank statements and source of his money? 4) What is the best mechanism to transfer the gift? should this be done directly from the uncle's bank account abroad to the nephews' bank account in the UK? or is it better for the nephews to find a property t...#application.mgbuilder.actiontypes.badge('','')#keep reading

Campione is more accurately known as 'Campione d'Italia' because it is a small sovereign Italian territory, but completely surrounded by Swiss territory. Following a request from one of our members we've looked at the status of Campione as a tax haven....#application.mgbuilder.actiontypes.badge('','')#keep reading

There are two key exemptions for non doms which allow them to take advantage of the remittance basis without having to file a tax return. In this article we look in detail at the nature of the exemptions and when they will and won't apply...#application.mgbuilder.actiontypes.badge('','')#keep reading

In this article we look at a couple of limits that HMRC apply in practice to non doms. Note that you won't find any of these limits in the tax legislation as these are applied by HMRC purely as a matter of practice. However, as they have been published they can be relied upon by taxpayers....#application.mgbuilder.actiontypes.badge('','')#keep reading

We've had a number of questions in the forum relating to whether non doms can use loans from related companies etc to avoid the remittance tax charge. In this article we look in detail at the effect of the remittance rules on loans to non doms and how they can use these rules to their benefit....#application.mgbuilder.actiontypes.badge('','')#keep reading

We've had a few questions on this in the forums and therefore it's well worth looking at this in a bit more detail. It's well known that there is a £325,000 limit on transfer between a UK domiciled spouse and a non UK domiciled spouse, but this article looks at some of the less well known impacts of this rule...#application.mgbuilder.actiontypes.badge('','')#keep reading

Establishing who holds the beneficial interest in an asset is crucial when assessing the tax implications. In this Practitioner Zone article we look at why it can be important when looking at making claims under a double tax treaty...#application.mgbuilder.actiontypes.badge('','')#keep reading