Update: ‘Non-Dom’ Rules, Finance Bill 2017
- October 10, 2016
- Posted by: Hansen Sweeney
- Categories: Budget 2016, News
Budget 2016 announced that the whole package of reforms to the “non-dom” regime in the UK would be legislated in the Finance Bill 2017.
Budget 2016 also announced that the government would legislate for two further measures to help those who become “deemed-domiciled” (meaning that you are considered domiciled in the UK whether you agree or not) after having been resident for 15 of the past 20 years, to transition to the new regime. It also sets out most of the intended protections for non-resident trusts which were originally announced at the Summer Budget 2015.
Following on from this, in August 2016 the government announced more detailed proposals affecting long term UK resident “non-doms” from 6 April 2017. This update covers the following key proposals:
- The new deemed domicile 15/20 years rule
- A rebasing election for offshore assets for individuals who become deemed UK domiciled on 6 April 2017 under the 15/20 rule
- A grace period to unravel offshore mixed fund bank accounts
- Proposals to charge UK inheritance tax on UK residential property held indirectly through an offshore entity
- Reforms for offshore trusts
- Proposals to make Business Investment Relief more accessible.
If you would like more information around these changes and how they impact on you, please contact us.