During another very different year we continued to flex our CRS programme to mirror both our needs and those of the local community … Read more
The final piece of the Making Tax Digital for VAT jigsaw is being put in place for 1 April 2022 and will come with various challenges … Read more
Sign up now for our Academy VAT and Tax workshop this January 2022 … Read more
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The April 2017 policy reforms and Brexit created concerns that the wealthy would be deterred from living in the UK and that we’d see a significant decrease in non-doms here. HMRC has since estimated that there were 75,700 non-doms paying UK tax in 2019/20, down from 78,600 in the previous year. This represents a smaller decrease than that seen in previous years, which shows that the numbers are stabilising at a lower level, due to non-doms either becoming deemed domiciled in the UK or no longer paying tax in the UK.
HMRC estimates that non-doms are liable to pay £7.853 million in UK taxes and National Insurance contributions (NICs) in the 2019/20 tax year in comparison to the £7.898 million paid in the prior tax year. Despite the decrease in the number of non-doms, this did not result in an overall fall in revenue to the exchequer, with those becoming domiciled continuing to pay tax in the UK and the tax received from new non-doms offsetting those that no longer pay tax in the UK. Further details on the HMRC report can be found here.
If you’re a non-dom, who is soon approaching your 15th year in the UK and are therefore thinking of leaving as a result of this, seek professional advice before you decide to jump ship. Becoming deemed UK domicile does not necessarily have to lead to a huge rise in your overall tax burden. With careful planning and the judicious use of Double Taxation Agreements, those coming up to their 15th year in the UK may be able to minimise potential liabilities on their overseas income or gains.
If you’ve already reached your 15th year in the UK and are thinking of leaving, things are slightly more complicated as you will still be considered UK deemed domiciled for IHT purposes for up to six years after your departure. Your worldwide estate is potentially exposed to UK IHT in the event that you pass away during that six-year period, so you may wish to consider taking out a short-term life insurance policy to protect your beneficiaries.
If you’re considering a move out of the UK, fill out the form below. Our experts will be in touch to help you review your situation and, if necessary, plan your departure taking into account any necessary tax liabilities to avoid unwanted surprises about your residence position.
