US / UK share - estate duty / IHT

[dentarthurdent]

Original Post Deleted

I can't see how any specific company will have a different tax treatment from any other. Did you perhaps post this in the wrong thread?

[er2]

TIL a lot of forum members are seriously preparing for their demise.

I mean, okay, the world is looking a bit bleak at times, but y'all know that if Trump blows us all to pieces, your US assets will likely suffer too....

[kittykaitak]

I understood that you do not pay capital gains tax on selling UK assets apart from property.

See section 1 here:
https://www.gov.uk/tax-uk-income-live-abroad

And more detail here:
https://www.gov.uk/tax-uk-income-liv...eriting-assets

[dentarthurdent]

Yes, but this thread is about Inheritance Tax.

[kittykaitak]

First post also mentions capital gains, hence my post.

[pin]

First post also mentions capital gains, hence my post.

Capital gains is also a fair point. I understand capital gains is based on residency and IHT is based on domicile.

[pin]

Re IB on selling of shares on a death

Interactive Brokers does not get involved in reporting or taxation of Non-US persons. As such, we simply do not have any information prepared, or documentation regarding this subject. We only report taxation for customers who are legal residents of Canada, and United States - no others. 

We can confirm that it (unfortunately) happens each week, that a customer around the world, in many different countries and small territories, suddenly passes away. 

Here is our procedure: 
We would ask that your next of Kin or your wife to forward a copy of your Death Certificate. We would also request any other documents or court orders that would describe to whom the assets should be distributed, the appointed individual. 

At that time, we would work with the appointed individual to open an Estate account in your name. The assets would be transferred to the Estate account, and the appointed individual would be given login access to the Estate account. Said individual can either trade out of the positions if he/she feels comfortable, or call our Trade Desk for assistance. After settlement of the trades, the individual can log back in and withdraw funds to your bank account in your name or your Estate's bank account.

Basically at the moment, it is the NRA's executor that needs to declare to the IRS if you have over USD60k.

The other thing I am looking into is setting up a company to trade.

[pin]

Original Post Deleted

Probably, yes.

Also see this article from a few years ago.

http://www.cnbc.com/amp/2015/11/03/w...-billions.html

Obviously policy may change in the future.

[Morrison]

Original Post Deleted

it seems your broker is quite slow in relaying this, it has been out for months.
btw, this also effects the dividend dates, look into it

[pin]

Probably, yes.

Also see this article from a few years ago.

http://www.cnbc.com/amp/2015/11/03/w...-billions.html

Obviously policy may change in the future.

Would just like to flesh out that article. While it was clearly written a-la Guardian style and tainting foreigners as evil beings, the bottom line is at the moment the burden on declaring US assets lies with the executor of the estate and not with the broker. The article basically went on to say that in 2015 only 800 odd US NRA executor forms were provided to the IRA, basically meaning that the executors of the many millions that die every year holding US assets are just not declaring them and then just selling them off.

This may obviously all change in the future.

Also for my consideration, is if I'm trading in UK shares from an HK account, does that count as my "UK assets" and put me back in the UK domicile camp?

I have done a bit of very rudimentary research into using a company for investments and understand for there is some case law in the US where they have pierced the corporate veil on that for estate tax.

I think in the long run I may have to do down the way of a trust. I just need to get enough money to justify the costs though!