Policy paper

Inheritance Tax: liabilities and foreign currency bank accounts

This Tax Information and Impact Note explains the amendments to the new rules for foreign currency accounts in UK banks.

Documents

Details

This will make sure that they are treated in the same way as excluded property for the purposes of restricting the deduction of a liability.

This will close a loophole that would otherwise allow the new rules to be sidestepped and a deduction for a liability to be allowed where the borrowed funds are deposited in a foreign currency account in a UK bank which is disregarded for Inheritance Tax purposes. The measure supports the government’s anti-avoidance strategy and fairness agenda.

Published 19 March 2014