In the July 2015 Budget, the Government announced various changes to the taxation of UK resident individuals who were not domiciled in the UK. As part of the original proposals, the Government suggested that the non-UK income and capital of non-UK resident trusts created by an individual who became deemed domiciled under the new rules would not be taxed on the individual following the changes (with the IHT position also remaining unchanged).
However, the original proposals were not clear on how benefits or distributions from those trusts would be taxed. The Government has now outlined that they plan to adapt the existing anti-avoidance legislation that already applies to income and capital gains arising from non-resident trusts.
Read a copy of our Briefing Note entitled Changes to the Taxation of Non-UK Trusts to find out more. Alternatively, please contact Robert Drysdale or a member of the Rooks Rider Solicitors’ Wealth Planning team.