US-UK Tax Talk
Tax talk and more from Collyer Bristow. A series focusing on English tax law, but always with a US flavour. Disclaimer: This content is provided for general information only and does not constitute legal or other professional advice. Appropriate legal or other professional opinion should be taken before taking or omitting to take any action in respect of any specific problem. Collyer Bristow LLP accepts no liability for any loss or damage which may arise from reliance on information contained in this material.
US-UK Tax Talk
Winning the Property Game: US and UK Tax Tactics with Bari Zahn
In the first of our new monthly podcasts, Aidan Grant is joined by Bari Zahn, Founding Partner of Zahn Law Global LLC, to explore the complex world of real estate ownership for high-net-worth individuals.
Bari, a US attorney with deep expertise in tax and estate planning, introduces the different ways property can be structured - direct ownership, LLCs, and various trust arrangements - highlighting the benefits, potential pitfalls, and tax implications of each. She reveals why many Americans turn to strategies like LLCs and revocable living trusts, which mimic direct ownership while offering probate and tax advantages, and Aidan considers how these solutions translate under UK tax regulations.
The conversation also takes a closer look at estate planning strategies designed to avoid probate and minimise tax exposure for UK citizens investing in US real estate. With insights into tools like transfer-on-death arrangements, jointly held assets, and both living and irrevocable trusts, Bari stresses the importance of tailoring solutions to account for the unique and often complex tax treatments in both the UK and US.
Using a real-life-inspired example of an American investing in UK property, the episode highlights potential tax traps, liability concerns, and the impact of co-ownership between American and non-American spouses. Nuances like ownership transparency, capital gains tax relief, and the interplay between US and UK tax systems are unpacked, providing listeners with practical guidance for navigating this cross-border minefield.
The discussion wraps up with a focus on evolving compliance rules, such as the Corporate Transparency Act, and the nuanced reporting responsibilities for entities like LLCs and trusts, including beneficial ownership filing requirements for trustees. Bari also dispels common misconceptions about probate and LLCs while delivering clear takeaways for both seasoned investors and those new to international real estate.
Join us on the first Wednesday of every month for a new episode of the US-UK Tax Talk podcast, brought to you by Collyer Bristow.
Key Takeaways:
Decoding Asset Structures: Whether held personally, through a company, or in a trust, how you own real estate shapes taxes, estate plans, and legal processes. Know the impact—structure smarter.
Tax Rules Aren’t One-Size-Fits-All: US and UK tax systems treat real estate differently. The US often looks through ownership structures like trusts or LLCs for taxes. Cross-border assets? Plan tax-smart.
Avoid Probate Pitfalls: Own property outright? Expect probate headaches, especially for multi-jurisdictional holdings. Solutions like living trusts can dodge probate—but beware of cross-border twists.
Simplicity vs. Strategy: Simple ownership (e.g., individual name) suits modest assets. But it might cost you—think probate hassles, weak asset protection, and estate planning roadblocks.
No Easy Path for Cross-Border Estates: US-UK property ownership comes with legal and tax chaos. Tackle it head-on with expert advice for seamless estate plans and robust tax strategies.
