Real Estate: East Meets West Dilemma

The Inheritance Tax issue is often a very real problem for Muslim clients who want their wills to accord with Sharia, which is generally highly inefficient for UK tax planning. We are aware of not just of religious concerns but also the intricacies of complex tax legislation, and have two strategies, the first of which is designed to take UK real estate outside the scope of Inheritance Tax altogether, even if the individual concerned later becomes a long term UK resident, and the second strategy of which is emergency post-mortem tax planning to avoid the Inheritance Tax charge whilst remaining Sharia compliant. Although this will work in most cases, there are significant minority where it will not be effective which is why we prefer properly structured ownership from the outset. .

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