Why UK Property Is an Inheritance Tax Trap — Even for Overseas Investors

Property is one of the most exposed asset classes when it comes to UK inheritance tax — and one of the most misunderstood, especially among overseas investors who assume non-residence puts them outside the scope of IHT. It doesn't. In this episode, David Bell is joined by Zeeshan Khilji, CEO of Tax Consulting Group, to unpack why UK property attracts no meaningful IHT reliefs, how the "UK situs" rule catches overseas owners regardless of residency, and what the real planning toolkit looks like for property investors and their advisers. Zeeshan walks through: → Why property doesn't qualify for Business Property Relief the way other assets can → The overseas investor blind spot — and why pre-2017 corporate structuring no longer works → Lifetime gifting, the seven-year PET clock, and the gift-with-reservation-of-benefit trap → Discretionary trusts, entry charges, and the 20% lifetime tax on transfers above the nil-rate band → Companies, SPVs, and why simply incorporating doesn't solve the IHT problem on its own → Family Investment Companies — freezer/growth share structures explained → Family buyouts using loan notes and HMRC clearance to defer CGT → Life insurance in trust as a liquidity solution for residual exposure → The IHT/CGT tension — and why some clients accept a "free lunch" trade-off → Corporate demergers and the base cost uplift opportunity → A real £10 million portfolio scenario: £4 million lost to IHT if nothing is done Whether you're a property investor, private client adviser, or work with HNW families holding UK real estate, this conversation is a practical guide to where the exposure really sits — and what good planning changes. 🔗 Full article and related content: link in comments 🎙️ Part of the HNW Advisor series from PCD Group