Non-domiciled individuals who are UK resident for more than 15 out of 20 years will become deemed domiciled for all tax purposes from April 2017. Those who become deemed domiciled in April 2017 can treat the market value of non-UK situated assets at 6 April 2017 as being their base cost.
This will avoid non-doms taking commercial risk and incurring foreign taxes by crystallising capital gains on non-UK assets prior to this date in order to achieve an uplift in the base costs of their non-UK assets.
Further information in relation to the proposals affecting offshore funds is still awaited, although it has been indicated that there will be some transitional rules for those becoming deemed domiciled.
For further information please contact 1st Financial Foundations on 01908 523 420 or email info@95.154.196.167.
The content is for your general information and use only and is not intended to address your particular requirements. The content should not be relied upon in its entirety and shall not be deemed to be, or constitute, advice. Although endeavours have been made to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No individual or company should act upon such information without receiving appropriate professional advice after a thorough examination of their particular situation. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of the content. Thresholds, percentage rates and tax legislation may change in subsequent Finance Acts. Levels and bases of, and reliefs from, taxation are subject to change and their value depends on an individual’s personal circumstances.
