The Government has announced that the next Finance Bill, including the new deemed domicile rules for income tax and Capital Gains Tax (CGT) and Inheritance Tax (IHT) on UK residential property owned through offshore structures, will be enacted at the earliest opportunity after the end of Parliament’s summer recess on 5 September 2017. These provisions were originally removed from the Finance (No. 2) Bill 2017 following the announcement of the General Election on 8 June this year. Updated draft versions of these measures were published on 13 July 2017.
All policies originally announced to start from 6 April 2017 will be effective from the start of the 2017/18 Tax year and include the extension of Inheritance Tax to all enveloped UK Residential Property and those measures for non-UK domiciliaries becoming deemed domiciled in the UK for income tax and CGT from 6 April 2017, under either the 15 out of 20 year residence rule or as those returning to the UK with a UK domicile of origin, who under those circumstances will become deemed domiciled in 2017/2018 and subject to UK tax on their worldwide income and capital gains.
To discuss this matter in further detail, please contact Robert Drysdale or a member of the Rooks Rider Solicitors’ Wealth Planning team.
