World's Largest Wealth Manager Unfazed By UK Non-Dom Reforms

Josh O'Neill

6 April 2017

The head of wealth planning at the world's largest wealth manager says the UK “will remain an attractive base” for the super-rich despite changes to the nation's non-domiciled tax regime, which take effect today.

Today, 6 April, marks the beginning of the new tax year, and with the fresh start comes a hangover for non-domiciled taxpayers, or non-doms.

The reforms, outlined by former chancellor of the exchequer George Osborne in his 2015 budget, have brought to an end permanent non-dom status for tax purposes.

Under the new rules, non-doms who have been a UK resident for 15 out of the past 20 years will be deemed as UK-domiciled for all tax purposes, regardless of when they came to the UK. Worldwide income and gains are therefore subject to UK tax.

The changes also mean that non-doms can no longer use an offshore structure, such as a company or trust, to sidestep inheritance tax levied on UK residential property.

But Sarah Allatt, head of wealth planning advisory at payable both by the trust and on the death of the person who created the trust,” May said. “Consideration will need to be given to such structures and, where appropriate, steps taken to unravel them.”