Under the Finance Bill 2017, a long term remittance base user can rebase non-UK assets and take the proceeds of such re-based assets into the UK without a remittance or other charge.
The question is therefore relatively simple, as is the answer, though please note that the decision set out below has been greatly simplified and full consideration must be given before deciding any course of action. There are also certain pre-conditions, rules and anti-avoidance provisions which apply and which need careful analysis.
Do I want to keep offshore assets in my own name with the benefit of rebasing as at 5th April 2017 so that I can receive rebased capital into the UK free of tax but knowing that I will be liable to IT and CGT on an arising basis and IHT in the event of my death.
Yes
There is no need to do anything – the current proposals are that rebasing is automatic unless elected not to apply.
Settle the assets into a Bourse Protected Trust before 6th April 2017. There will be no ingoing lifetime IHT charge (unless already deemed-domicile for IHT purposes) and income and gains will be ‘protected’ – i.e. will not be treated as ‘arising’ to a UK resident settlor. Note that after the 6th April even a non-resident non-domiciled person will be liable for the ingoing lifetime IHT charge @ 20%, if the assets are shares in an offshore company the value of which is by reference to UK residential property.
