Getting forex wrong can cost a creative business thousands of pounds. The bigger the international transaction, the greater the risk. Exchanging currencies at the wrong time can even put a firm’s future at risk.
There is strong overseas demand for Britain’s creative output. Creative services are relatively easy to export. And many of the country’s creative firms are based in London, a location that’s renowned as a global business and creative hub.
Whilst there are no concessions under the WDF, the severe penalties which will be imposed in respect of offshore tax evasion which will take effect under new rules in 2018 should serve as an incentive to use this disclosure opportunity.
The mechanism for bringing such UK residential property held in this way into the UK tax net will be to remove these structures from the definition of excluded property – and therefore no longer excluded from IHT.