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In his March Budget, Chancellor of the Exchequer Jeremy Hunt revealed plans to eliminate the non-dom tax regime, slated for implementation on April 6, 2025. Instead, a residency-based system will take its place. Under this framework, individuals relocating to the UK can enjoy a tax exemption on foreign income and gains for their initial four years, after which they will be subject to the same tax regulations as any other UK citizen. Read more: https://ow.ly/AcZq50RiZy1 #nondomicile #nondomtax #internationalresident

✨ Big Changes Ahead: The UK is set to abolish the 200-year-old Non-Dom tax regime, introducing a 4-year residency test. -From April 2025, up to 50% of your overseas income might be subject to UK taxation if you're a Non-Dom. -The Inheritance Tax (IHT) rule is also changing for Non-Domiciled individuals, potentially affecting long-term residency decisions. -The abolition of the Non-Dom status represents a significant change in the UK's approach to the taxation of international individuals. -Concerned about these changes? Let's talk! Book a discovery meeting to explore strategies before April 2025 https://lnkd.in/ddMBy5sQ #Taxation #NonDom #UKTaxChanges #FinancialPlanning #InternationalProfessionals https://lnkd.in/dsBAJc3z

United Kingdom: Budget 2024 – Abolition of non-dom regime and introduction of new residence regime: On 6 March 2024, the Chancellor of the Exchequer delivered his Spring Budget. This contained a number of significant tax changes relevant to our clients, including changes to the way in which UK tax resident non-UK domiciled individuals will be taxed in future and a new advantageous tax regime for individuals becoming UK tax resident. These changes are very significant and we recommend clients take immediate advice on the potential implications for them and their structures. The post United Kingdom: Budget 2024 – Abolition of non-dom regime and introduction of new residence regime appeared first on Global Compliance News. -via @bakermckenzie

The UK government has announced significant changes to the non-domiciled (non-dom) tax regime in the Spring Budget of 2024, set to take effect from April 2025. These reforms aim to modernize and simplify the tax system while making it fairer and more competitive internationally. Reasons why individuals are relocating from the UK and seeking new tax domicile include: - Increased Tax Liabilities due to recent reductions in the annual exempt amount for capital gains tax (CGT). - Changes in CGT Rates, with the higher rate on residential property gains reduced to 24%. - Speculation on Future Tax Policies leading to concerns about potential additional tax reforms. - Strategic Financial Planning, as high-net-worth individuals move to jurisdictions with more favorable tax regimes to optimize tax liabilities. Changes in UK Tax Law and Domicile Treatment include the abolition of the Non-Dom Regime from April 2025, replacing it with a Residence-Based Tax Regime. New arrivals will receive full UK tax relief on foreign income and gains for their first four years of UK residence if they have been non-UK tax residents for at least 10 consecutive years. Transitional Arrangements include a Temporary Repatriation Facility, a 50% reduction in tax for individuals transitioning from the remittance basis to the arising basis, and rebasing relief for personally held foreign assets. The impact on Trusts and Inheritance Tax involves the removal of special protections for non-UK trusts and annual taxation of income and gains arising within such trusts on UK resident settlors. The government is also considering moving inheritance tax to a residence-based regime. These changes reflect a broader shift in the UK tax landscape, aiming to attract international talent and investment while ensuring a fairer and more competitive tax system. #TaxReforms #UKTaxChanges #FinancialPlanning #RelocationUAE

So, the Labour party have published their manifesto. Just having a quick browse (looking for mention of non-doms for a client) and noted that the Fiscal Plan section states that revenue is to be generated from, among other things: 'closing further non-dom tax loopholes' 'investing in reducing tax avoidance' 'applying VAT and business rates to private schools' 'closing carried interest tax loophole' 'increasing stamp duty on purchases of residential property by non-UK residents by 1%' They also have a plan for small businesses, which will include taking action on late payments to ensure that these are paid on time, and improving guidance and removing 'barriers to exporting for small businesses'. They will also reform procurement rules to allow small businesses greater access to government contracts. The non-dom system is to be abolished and replaced with a new set of rules for individuals in the country for a short period, and use of offshore trusts to avoid inheritance tax will be brought to an end. If you make the UK your home, you will pay tax here, they promise. They will also end the use of carried interest to bring private equity carried interest into income tax (and presumably National Insurance) from the capital gains regime. They also promise to 'increase registration and reporting requirements' for tax, and improve tax collection by building capacity within HMRC, as well as focusing on tax avoidance by 'large businesses and the wealthy'. Nothing unexpected there really, but it will have ramifications for many people, including those whose children attend private school. The devil will always be in the detail, so we have to wait and see who wins the election, but it looks like some changes may be ahead, whoever forms the next government. Watch this space! #generalelection #tax #incometax #nondoms #privateschoolvat #privateequity

Insightful summary by my colleague #HainesWatts Tax expert Nicola Goldsmith TEP CTA on the Labour party’s recently published manifesto. Highlighting key revenue generation strategies, including closing non-dom tax loopholes, reducing tax avoidance, and applying VAT and business rates to private schools. While these proposals may not be unexpected, they could have significant implications for many, including those with children in private schools. Stay tuned to for more updates from Nicola Goldsmith TEP CTA as our experts continue to navigate these potential shifts in our tax landscape for you! #GeneralElection #Tax #IncomeTax #VATPrivateSchools

Referred to as a pre-election Budget, the headline grabbing announcements were the 2% cut in the main rates of NIC for both employees and the self-employed (but not employers) and the replacement of the Non-Dom regime with the new FIG (Foreign Income and Gains) rules. However there were a number of measures affecting business and property taxes and as ever it is important to understand the details. Our summary of the key measures can be found here: #springbudget2024 #tax #employmenttax #NIC #paye https://lnkd.in/d-bXKct3

Abolition of the non-dom regime in the UK The non-dom regime, which has long been part of the UK tax system, offers advantages for UK residents who are permanently resident outside the country, as foreign income and gains are exempt from tax unless they are remitted to the UK. However, adjustments over the years have affected the application of the scheme. With the government's announcement to abolish non-dom status, significant changes will be made to the UK tax landscape from 6 April 2025. Among the proposed changes is the replacement of the remittance basis regime with a new residence-based test that will affect the taxation of foreign income and gains. Labour's alternative proposals increase complexity, particularly in relation to the taxation of foreign assets held in trusts. The March 2024 Budget will introduce new rules for foreign income and gains, allowing a four-year transitional period from 6 April 2025 or when residence in the UK begins thereafter. During this period, new UK residents will not have to pay tax on their foreign income and gains or distributions from non-resident trusts. However, opting into this regime will mean the loss of entitlement to personal allowances and annual allowances for capital gains tax. Transitional provisions facilitate the changeover for current non-taxable persons with special rules for the taxation of foreign income in the first year of the changeover. Thereafter, foreign income will be taxed under normal UK tax rules. The facilitation of overseas working days and the impact on internationally mobile workers will also be addressed and will affect personal allowances and tax reliefs. Are you looking for alternative solutions for a sustainable structure? The Red Leafs Tax AG team of experts will be happy to assist you with any questions you may have: Priska Roesli Daniel Rinderer Michael Abegg Ulrich Stertkamp Stefan Züst Franz Wegscheider Riccardo Weingart Georgina Marton Florian Zogg #wemanageyourtaxes #redleafsgroup #transformation #consulting #newsoftheday #newsletter #updates #update #tax #taxes #steuern #UK #international #structuring

The imprtance of non-doms taking tax advice is explained here

Delving deeper into the proposed changes, our article below covers the new FIG regime and areas of consideration. #mazars #privateclient #NonDoms #international