The countdown to 2017 led us to 6 April 2017, the date the UK government proposed to introduce new legislation changing the way non-domiciled individuals are taxed once they have been long-term resident in the UK. Other important changes affected non-doms owning UK residential property through offshore structures, and the taxation of offshore trusts. The Finance Bill was drafted and legislation proposed to enact these changes on 6 April 2017 as stated.
However, in a very surprising and unprecedented move, the Government has just announced it is dropping those sections of the Finance Bill that were going to introduce these changes. Whilst it is likely that the dropped proposals will return after the UK general election on 8 June, for the time being the UK government is not introducing changes to: treat non-domiciled individuals as UK domiciled for all tax purposes once they have been UK resident for fifteen out of the previous twenty tax years; bring all UK residential property, including certain loans to fund their purchase and assets used as security for those loans, within the scope of UK inheritance tax; or to change the way they tax offshore trusts.
Andrew Goldstone is a partner in Mishcon Private and heads up the tax group.
This article was first published by City Wealth Magazine