Are you a ‘Non-Domiciled’ and wondering how the last announcement by the Chancellor is going to affect you? Speak to one of our tax advisors at VERA Group.
The Spring Budget is likely to be the last before the UK General Election later this year or early next year. Even if some of the proposed changes are going to be subject to consultation and may change, they will lead to some uncertainty in tax planning.
With a bold move the Chancellor attempted to balance increasing tax take from non-domiciled residents and retain High Net worth individuals in the UK.
From April 2025, the Government will abolish the current tax regime for non-UK domiciled individuals also known as “non-doms”.
The highlights for the new proposed non-domiciled tax regime are:
- A 50% reduction in foreign income subject to tax in 2025/26 tax year for those already in the U.K. for 4 years.
- Rebase of foreign assets to April 2019 for disposals after April 2025. Pre April 2025 unremitted profits can be remitted after that date at a special rate of 12% for a 2 year period.
- Protected settlements will remain protected until April 2025 – after that date they will become fully transparent for income and gains.
After all the transitional measures have ceased on 6th April 2027 the tax regime will be simplified.
Another aspect to consider is how rules around Inheritance Tax might be modified to accommodate these ‘non-dom’ rule changes (after 10 years of UK residency).
If you have any questions about the Government’s Spring Budget and how it may impact you, please get in touch with your usual contact at Vera Group.
Alternatively you can send an email to info@veragroupltd.com or call the Tax Team at 02074346000.