Important changes to the tax treatment of non-domiciled (non-dom) individuals in the UK are due to take effect from the beginning of April – and those who believe they might be affected are strongly urged to seek advice.
As of 6 April 2017, anyone who has been a UK resident for 15 of the last 20 financial years will be ‘deemed domiciled’ for UK tax purposes. This is known as the new ’15/20 year rule’, which will replace the outstanding 17/20 year rule.
Furthermore, any individuals who were born in the UK, but have since acquired a domicile of choice overseas, will have their UK ‘deemed domiciled’ status reinstated upon returning to live in England, Wales, Scotland or Northern Ireland.
Anyone who finds themselves ‘deemed domiciled’ under the new rules will effectively no longer be entitled to claim the remittance basis for either Income Tax or Capital Gains Tax (CGT) purposes, and such individuals will now see themselves liable to pay UK tax on any international income and gains.
Experts have warned that the imminent changes will have far-reaching implications for non-doms, who are strongly urged to seek advice from specialist tax advisers.