Spring Budget 2024 – Changes in taxation for non-UK doms from 6 April 2025. 2025年4月6日對非英國居民的重要稅收變更

Following the Chancellor's recent Budget announcements we summarise the some of the key points in taxation policies for non-UK domiciled individuals, effective from 6 April 2025

We wanted to bring to your attention some crucial changes in taxation policies for non-UK domiciled individuals, effective from 6 April 2025.

Below is a simplified overview of the key points for personal tax issues:

1. Who is Affected?

• This note is for non-domiciled individuals already residing in the UK and those planning to move to the UK.
• Detailed consequential changes due to the shift to a residence-based tax system will be provided in later updates and draft legislation.

2. Summary of Changes

•  The current remittance basis of taxation for UK resident non-domiciled individuals will be replaced by a new 4-year foreign income and gains (FIG) regime from 6 April 2025.
• Qualifying individuals won’t pay tax on FIG for the first 4 years after becoming UK tax residents, and these funds can be brought to the UK without additional charges.
• Overseas Workday Relief (OWR) for the first 3 tax years of UK residence will be retained and simplified.
• Protection from taxation on future income and gains within trust structures will be removed for those not qualifying for the new 4-year FIG regime.
• Individuals transitioning from the remittance basis to the arising basis in 2025-2026 will benefit from a 50% reduction in foreign income for that year.
• Individuals who have been taxed on the remittance basis can elect to pay tax at a reduced rate of 12% on repatriations of pre-April 6, 2025 FIG under a Temporary Repatriation Facility for tax years 2025-26 and 2026-27.

3. The New Regime for Income and Capital Gains Tax

• A new 4-year FIG regime will be available for individuals becoming UK tax residents after 10 years of non-UK tax residence, starting from 6 April 2025.
• Eligible individuals won’t pay tax on FIG for the first 4 years, simplifying the tracking of FIG movements compared to the current regime.
• The Statutory Residence Test will determine tax residence.
• Choosing the new regime forfeits personal allowances and the capital gains tax annual exempt amount.
• Claims for the new FIG regime are to be made for each applicable year.
• Temporary exits during the 4-year period won’t affect the ability to claim under the new regime upon returning to the UK.
• Individuals resident in the UK for less than 4 years on 6 April 2025, can use the new regime for the remaining years.

4. Overseas Workday Relief (OWR)

• OWR will continue for those using the new 4-year FIG regime, providing relief for earnings from duties performed outside the UK.
• OWR will be available for the first 3 tax years of UK residence.

2025年4月6日對非英國居民的重要稅收變更

重要的稅收政策變更，對非英國居民從2025年4月6日生效。以下是主要內容的簡要概述：

   1.  影響對象

• 此通知針對已經在英國居住的非英國居民以及計劃移居英國的人士。
• 由於轉向以居住為基礎的稅收制度，將在後續更新和法案草案中提供詳細的後果性變更。

  2.  變更總結

• 從2025年4月6日起，針對英國居民的非英國居民的現行匯款稅收 (Remittance Basis) 基礎將被一個新的4年外國所得（Foreign Income and Gains, FIG）制度取代。
• 符合條件的個體在成為英國稅收居民後的前4年不需繳納FIG的稅款，並且這些資金可以無需額外費用地匯回英國。
• 保留和簡化了英國居民的前3個稅收年度的海外工作日減免（OWR）。
• 對於不符合新的4年FIG制度資格的人，將取消未來收入和收益在信託結構中的免稅保護。
• 在2025-2026年度，從匯款基礎過渡到產生基礎(Arising Basis)的個體將在外匯收入方面獲得50%的稅款減免。
• 在2025-26和2026-27稅年，曾經以匯款基礎納稅的個體可選擇以12%的減稅率納稅，用於先前於2025年4月6日之前產生的FIG的遣返，這是由一個臨時遣返設施提供的。

 3.  所得稅和資本利得稅的新制度

• 從2025年4月6日起，將提供一個新的4年FIG制度，適用於在非英國居住10年後成為英國稅收居民的個體。
• 符合條件的個體在最初的4年內不需繳納FIG的稅款，相較於當前制度，這將使FIG的移動追踪變得更加簡化。
• 將使用法定居住測試來確定稅收居住地。
• 選擇新制度將放棄個人免稅額 (Personal Allowance) 和資本利得稅年度免稅額 (CGT Annual Exemption)。
• 需要每年聲明新FIG制度的申請。
• 在4年期間的暫時離開不會影響回到英國後聲明新制度的能力。
• 在2025年4月6日時在英國居住不滿4年的個體，可以在其餘的年份內使用新制度。

 4.  海外工作日減免（OWR)

• 對於選擇使用新的4年FIG制度的人，OWR將繼續提供對在英國以外工作的收入的減免。
• 新的OWR將在英國居住的前3個稅收年度提供減免。

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