Changes Affecting Non-Domiciled Taxpayers

Share

In his July Budget announcement the Chancellor announced a number of important changes to the tax treatment of individuals who are resident but not domiciled in the UK.

Such individuals currently benefit from a number of tax advantages such as exemption from UK inheritance tax (IHT) on assets situated outside the UK and in some cases only being taxed on overseas income and gains if those amounts are remitted to the UK.

From April 2017, IHT will be payable on all UK residential property owned by nondomiciles, regardless of their residence status for tax purposes, including property held indirectly through an offshore structure.

From April 2017, individuals who are born in the UK to parents who are domiciled here, will no longer be able to claim non-domicile status whilst they are resident in the UK.

The government will also legislate so that from April 2017 anybody who has been resident in the UK for more than 15 of the past 20 tax years will be deemed to be domiciled in the UK for all tax purposes. This is being reduced from the current 17 year deemed domicile rule for IHT.

Published on 13th July 2015 by Arram Berlyn Gardner LLP.

Share

Other News

Lifestyle Modelling: The Crystal Ball for Your Financial Future

Have you ever found yourself asking “When can I afford to retire?”, “Can I afford to leave a legacy for my loved ones?”, “How much do I need to be saving for retirement?”. If you have, lifestyle modelling will likely be beneficial for you.

The truth about student loans

Freshers heading to university this autumn can expect to pay more for their higher education than students graduating this summer, but paying off student loans doesn’t always make financial sense.

Investing In Yourself: Improving Your Financial Wellbeing Is Self-Care

Balancing careers, family responsibilities, and personal aspirations can be overwhelming. Amid this whirlwind, women often rally around each other, offering support for both our physical and mental wellbeing.