Many people will be aware, and have made plans in anticipation, of the proposed changes to the taxation of non doms with effect from 6th April 2017. These changes were announced in July 2015 and the draft legislation has been issued in various stages since that time. Although much of it was very late in being issued it was expected to become law as part of the Finance Bill 2017.
The Bill received Royal Assent on 27th April although all references to these changes were cut from the Bill (see our blog on this). This means an extension to the period of uncertainty and below are some of the questions we are being asked:
Why were these issues left out of the Bill?
The Government and the Opposition agreed that due to the snap General Election there would be insufficient time before the dissolution of parliament on 3rd May to discuss all of the clauses of the Bill. This led to more than half of the original Bill being removed. These were the more controversial and complex clauses.
Does this mean that the proposed non dom changes have been scrapped?
No, the legislation enacting them has been shelved until after the General Election and it is likely that a further Bill will be issued at some point later this year. Although there is nothing definite at this stage it is expected that the proposed changes will be introduced as planned.
When will there be more news on this?
There will not be any legislation issued before the UK General Election on 8th June and it is possible that there might not be anything until after the summer recess.
How could this be affected by the General Election on 8th June?
It is not known at this stage whether either party has plans to change the proposals if elected. They may include details within their manifestos which we will be reviewing.
If I have already left the UK to avoid being caught by the changes can I now return?
It is probable that the changes will come into effect from 6th April 2017 as originally planned so any changes which you have made should remain until the position has been clarified.
What should I do now?
You should continue as if the changes will take effect from 6th April 2017 even though the legislation is not yet in place. We will be reviewing all legislation as it is issued and further updates will be released.
If you have specific questions relating to your personal situation and are looking for professional advice please do get in touch.