Non-doms hoping for adjustments or delays to the brand new Labour Authorities’s reforms can be dissatisfied by the HM Treasury coverage paper launched yesterday, based on main audit, tax, and enterprise advisory agency Blick Rothenberg.
Nimesh Shah, CEO of Blick Rothenberg, acknowledged: “Non-doms holding out for changes or a delay to the original Conservative Government proposals will be disappointed, as the reforms will be largely the same as announced by Jeremy Hunt in his last Spring Budget as Chancellor.”
Shah added: “The new Government has committed to implementing the 4-year Foreign Income and Gains (FIG) regime from 6 April 2025, and there is clear intent to progress that change as soon as possible.”
The coverage paper has curtailed a number of the unique transitional provisions for the transfer to the FIG regime. This consists of eradicating the first-year low cost on international revenue, suggesting a rise to the tax price for the non permanent repatriation facility, and confirming the elimination of the inheritance tax exemption for trusts. Shah indicated, “There is a clear signal that this Labour Government wants an end to the non-dom regime.”
Many non-doms have been essential of the proposals, with studies suggesting that they’re contemplating relocating to international locations like Italy, the UAE, and Switzerland, which provide tax breaks. The affirmation that the Labour Authorities is urgent forward with its plans is prone to reinforce and, in some circumstances, speed up plans to go away the UK.
Shah famous, “In some ways, it is helpful that the new Government has clarified their position and a line has been drawn. Although the final details of the rules will not be known until the Autumn Budget on 30 October 2024, we shouldn’t expect any reversals given the clear tone in the policy document.”
