Unilateral relief for IHT

Produced by a Tolley Trusts and Inheritance Tax expert

Trusts and Inheritance Tax

Guidance

Unilateral relief may be available as a credit against UK inheritance tax (IHT) where a tax of a character similar to IHT has been imposed on property in an overseas territory.

Unilateral relief will apply in relation to territories to which double tax relief does not apply.

Where double tax relief can also apply, the provision that provides the greatest relief can be claimed. See the Double tax relief for IHT guidance note.

Some foreign jurisdictions have their own version of unilateral relief, such as Germany. These may be limited to some extent (in the same way as UK unilateral relief).

Conditions for relief

For the relief to apply, tax must be imposed in a territory outside the UK and be attributable to the value of any property, and:

•
the tax must be of a character similar to UK IHT or be chargeable on or by reference to death or lifetime gifts
•
the UK IHT chargeable on the same occurrence must be attributable to the value of the same property

The

Access this article and thousands of others like it
free for 7 days with a trial of Tolley+™ Guidance.

TAKE A FREE TRIAL

Popular Articles

Personal Tax

Foreign self-employment

Foreign self-employmentTrading in another jurisdiction involves many issues, only some of which involve taxation. Advice should be taken, not only in relation to tax but on the wider business implications. For an overview of the points to consider for certain jurisdictions see Tolley's Global

14 Jul 2020 11:44 | Produced by Tolley Read more

Corporation Tax

Double tax relief

Double tax reliefWhen income arises in a foreign country to a UK resident company and that income is taxable in that foreign country, the UK may give the company relief for the foreign tax by crediting the foreign tax against the UK tax charged on that income. This might include withholding tax on

14 Jul 2020 11:31 | Produced by Tolley in association with Anne Fairpo Read more

Employment Tax

Fuel-related payments / mileage payments

Fuel-related payments / mileage paymentsIntroductionMost employers will make payments to employees in relation to business travel. Among the most common payments in relation to business travel are fuel and mileage payments. If an employer does not reimburse these amounts, then the employee will be

14 Jul 2020 11:46 | Produced by Tolley in association with Philip Rutherford Read more

��˾��ҹ��