Articles4 Jun 2024
Tax Takes Centre Stage in Election Year
As the election nears we focus on the main parties for their financial policies, however it's important to be aware of what you can do now to make sure you are tax efficient.
Articles
Is there really a need to make a “panic” exit from the UK ?
As a tax adviser specialising in matters concerning internationally mobile clients, I have been working with new and existing clients since the 12 March (Budget Day) who are UK tax resident and non-UK tax domiciled – “non-doms” to review whether they should “pack their bags” and make plans to permanently leave the country before the 6 April 2025. Budget Day provided sweeping and far-reaching changes to the existing rules that enable a non-dom’s, who are broadly individuals born overseas with enduring connections with another country, to manage UK tax liabilities on overseas income and capital gains that are not brought into the UK by making use of the remittance basis of assessment in preference to the standard worldwide arising basis of assessment.
The proposed changes put forward by the Conservative party Chancellor are likely to have a profound impact on the assessment of income and capital gains tax liabilities and also on inheritance tax for non-doms.
As with any changes in the law, there will be winner-and-losers and for some will find the new proposals advantageous to their particular circumstances. “The devil is in the detail” as they say.
There is an added problem In that these proposals have yet to make it to statute law, and since the UK is in the processing of a General Election cycle there may be further changes that need to be considered.
At this time, the headline change announced in the Budget is that the existing rules concerning the identification of non-dom status, which has long been argued as being vague and incompatible with the modern world, is to be scrapped and will be replaced with a new regime that makes use of the existing Statutory Residence Test (in force, by law from the 6 April 2013) through which general tax residence is determined.
The proposed changes, subject to consultation, will depend on the political landscape after tomorrow – 4 July.
THE AUTHOR
Manager, Personal Tax
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