Despite the rumours in the media, the Autumn Statement 2023 was thin on the ground in terms of personal tax changes. Among a few noticeable absences were any changes in relation to the tax rules for non-UK domiciled individuals (non-doms).
Very broadly, a non-dom is a term used for a UK resident whose permanent home is outside of the UK. Non-doms currently can enjoy a favourable tax treatment for their first 15 years of residence in the UK, known as the remittance basis. This enables non-doms to shelter foreign income and capital gains from UK tax to the extent that these have not been remitted to the UK. There is also scope to shelter foreign assets from UK inheritance tax.
The rules came under increasing scrutiny following press coverage involving the then Chancellor’s non-dom wife in 2022 and there is certainly political pressure to make changes. If elected, the Labour party have said that they would abolish the non-dom system entirely and offer a shorter-term scheme. The Conservatives may also make changes, with speculation of a consultation process being announced in the Autumn Statement. There was however radio silence.
It is impossible to predict right now the extent and timing of any changes, but change is looking inevitable.
Irrespective of the uncertainty, we still encourage non-UK domiciled individuals to make contact with us now so that we can review and discuss your worldwide balance sheet. Particularly those who have been resident in the UK for less than 15 years. This will enable us to be at the ready once any changes have been announced. Hopefully there will be a window of opportunity to take action where it is appropriate to do so. Please contact me or a member of the Private Client Team.