For some time we have been waiting for the new non-domicile rules to be signed into law. They were announced last year but prior to the election were put on hold. Now the Finance (No 2) Act 2017 has received Royal Assent they are in force.
The charges are effective from 6 April 2017 and so will impact on non-domiciled individuals in the current tax year.
- For non-domiciled individuals who have lived in the UK for 15 of the last 20 years, they will be deemed domiciled for inheritance tax purposes
- They will be able to release assets sited overseas for capital gains tax purposes
- If you were in the UK with a UK domicile of origin but subsequently left, you will be
UK domiciled on the date of return - Non-domiciles who have claimed the remittance basis can now ‘cleanse’ any mixed funds
- Where UK residential property is held within a corporate, partnership or trust structure this is ‘look through’ for inheritance tax purposes
Whilst these changes present both good and bad points and are retrospective, it does now mean that decisions can be made before the end of the tax year.
If you think that you are caught by these new rules, please contact our Senior Tax Manager, Lucy
Disclaimer
The views expressed in this article are the personal views of the Author and other professionals may express different views. They may not be the views of Lambert Chapman LLP. The material in the article cannot and should not be considered as exhaustive. Professional advice should be sought in connection with any of the issues contained in the article and the implementation of any actions.