One thought on “Top international queries from financial advisers”

  • When considering what assets may be held in an “excluded property trust” advisers should remember that UK OEICs and unit trusts are “excluded property”. The legislation states:

    “A holding in an authorised unit trust and a share in an open-ended investment company is excluded property if the person beneficially entitled to it is an individual domiciled outside the United Kingdom.” (Inheritance Tax Act 1984 section 6).

    Gordon Brown (the then Chancellor) introduced this provision to boost the UK investment industry.

    The use of OEICs and unit trusts in excluded property trusts opens up some interesting planning opportunities.

    There will of course be income tax and capital gains tax issues to be considered when using these wrappers.

    “International bonds” will usually be the wrapper of choice but comprehensive advice would at least consider the use of OEICs and unit trusts.

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