IHT does this work

Had this e mail today

The solution to the IHT/ISD problem in Spain is for the owner/s to invest their Spanish property into a new UK company where the owners are both the shareholders and directors and remain in complete control of their asset. (There is no 10% Property Transfer Tax payable on this transaction). The property then becomes owned within a UK company and as such comes under UK tax law. Any transfers between a husband and wife in the UK are tax exempt. Each individual has an allowance of 325,000 sterling before IHT is payable in the UK and a couple would therefore have a combined allowance of 650,000 sterling.

I believe that the costs of running such a scheme are not as slight as at least one company makes out! There may also be ancilliary problems with HMRC. There may be a margin of gain if the value of the property is quite high.

If a thing seems too good to be true.....

I have heard that costs are involved with this method, and it's not suitable for Mr and Mrs Average.

However if anyone out there has gone through this procedure, it would be interesting to hear of their experiences.

Having looked at all the methods of avoiding or lessening IHT(as I am in ill fated Murcia where the regional allowances have been abolished) I have to say that all publicised methods so far have had serious drawbacks.

I just wish that the power to determine allowances was taken away from the regions, giving only the state the power  to set a fair and realistic state allowance, which should be very much higher than the derisory 16,000 euros that has not been increased for many years.

How about a state allowance which is set at the wealth tax threshold? That would mean only the very wealthy paid, which is as it should be. Very much doubt that it will come to pass!

As a result of my complaint to Brussel, the Spanish Government have been ordered to put their house in order on discriminatory IHT in respect of non-residents..  Their first attempt was not good enough and the matter has been referred to the European Court of Justice.  It is due to be heard some time this year.  If you are a non-resident, it may be as well not to do anything until a decision is forthcoming.

Some schemes have been adjudged to be a fraud on the Revenue.