Non domiciled UK residents can reduce their exposure to UK Taxes
Individuals are generally ‘domiciled’ in the country they consider to be their ‘permanent home’, and not necessarily in the country they actually reside in, even if they have lived away from their country of domicile for many years.
Being non UK domiciled can bring significant tax advantages; however new legislation comes into effect from 6th April 2017 which tighten up the rules on ‘deemed domicile’ thereby making it far more difficult for UK residents to benefit.
The new rules apply where an individual is not UK domiciled under common law principles, but
- has been UK domiciled in the previous 3 years,
- the individual has a UK domicile of origin, and was born in the UK, and was resident in the UK in one of the two years preceding the year of potential charge
- has been UK tax resident for 15 out of the past 20 years
If you are likely to be affected by these changes there is still a window of opportunity to make plans which will protect your overseas assets from IHT for years to come, but you need to act now.
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