The Current Status - An Update
As advised previously it was anticipated that the legislation relating to the changes to the taxation of individuals not domiciled in the UK announced in the Summer Budget 2015 would be included in the Finance Bill 2016 which was issued on 24th March 2016. This was not the case and the Bill makes no reference to the potential changes.
This is despite HMRC advising that the draft clauses would be included in the 2016 Bill. The only reference to the changes is in the overview to the Bill which states "The Government will legislate all non-dom reforms in Finance Bill 2017". This is unlikely to be issued before late 2016 and possibly not until early 2017.This means that we still do not have certainty over the changes which will be introduced on 6th April 2017.
At a meeting with HMRC’s lead policy advisors last Friday we were advised that no new details will be released until after the Referendum on 23rd June 2016 and that is only likely to be further consultation documents. This did confirm that as much draft legislation as possible will be issued as part of the consultations.
At the same meeting HMRC advised that in future they will be looking more closely at the tax affairs of individuals who claim to have left the UK where they were approaching or had reached the point where they would be deemed domiciled in the UK. This does not mean that leaving the UK for tax purposes is not possible it just places an even greater emphasis on the need to keep accurate records.
NB. This is our understanding as at 28 April 2016. We recommend that individuals seek professional advice before taking, or refraining from taking, any action.