Posted by Nick Day on 08 Jul 2015
Budget Newsflash – Changes to Non-Domiciled Rules
In his 2015 Summer Budget, the Chancellor has announced changes to the rules that determine an individual’s domicile status. From April 2017 the current permanent non-domicile status will be abolished and any individual who has lived in the UK for 15 of the past 20 years will pay tax on the same basis as other UK citizens.
This is similar to a system that has long been in place for inheritance tax, whereby non-domiciled status cannot be held by a UK resident individual indefinitely, but extending the principle to other taxes will have wide-reaching consequences. Under the current rules it is possible for non-domiciled individuals to limit their exposure to UK taxation indefinitely by paying the remittance basis charge, keeping non-UK income and gains outside of the UK tax system.
It now seems that this will only be possible for a limited period of time. The precise details of this change have not yet been released and it is inevitable that there will be significant clarification forthcoming as to how the new rules will operate in practice.
Keep checking our website for details of this and other measures announced today. If you would like any advice regarding the above article or would simply like to discuss other ways in which we could help you or your business, please contact us on 01962 856 990 or firstname.lastname@example.org
- Tax Relief For Residential Mortgages
- Incorporation of Property Portfolio
- Property Partnership Incorporation and SDLT
- Non-Cash Employee Benefits
- UK tax residents – beware of US LLCs!