UK Based Share Broker, worry about CAT problem?

[Prittstick]

In a previous thread--
Gordon Gekko Posted:

"..the poster suggests that he/she could opt for a UK based broker.

I'm just highlighting the fact that this can lead to inheritance tax problems"

I have an account with TD Direct.uk with a good lot of money in various shares. Gordon G mentioned possible Inheritance Tax problems.

I would appreciate if anyone could expand on this, as forewarned is forearmed. Thanks

 

[Brown]

I don't know about the UK. But I had to pay inheritance tax on shares of an American company held with an American based stock brokers.

 

[Ravima]

Well, if you 'inherit' or are 'gifted' anything that is in excess of your threshold, be it in Ireland or anywhere in the world, you must pay CAT. If you own the shares yourself in the TD account, then you own them so you cannot inherit them from yourself, nor will you be gifting to yourself, so there is no CAT payable.

Any profits made in your sharedealing will result in CGT being payable. This is self assessment.

 

[Gordon Gekko]

The issue that's being highlighted is foreign inheritance tax on foreign situs assets. Take the US as an example. If someone holds US shares through an Irish broker, the US authorities have no visibility on that person's death. The shares are held in the name of "Broker Nominees 12345". Death looks the same as an ordinary sale from the US side, so in practice any US tax is avoided (wrongly). But for shares held through a US broker, the US broker insists on US probate so the IRS is aware of the death and any tax gets paid.