Consultation on non-dom reforms

22 August 2016

At the Summer Budget 2015, the government announced a series of reforms to the way that individuals with a foreign domicile (‘non-doms’) are taxed in the UK. These changes will bring an end to permanent non-dom status for tax purposes and mean that non-doms can no longer escape a UK inheritance tax (IHT) charge on UK residential property through use of an offshore structure like a company or a trust.

At the Autumn Statement 2015, the government made a further announcement that it would consult on how to change the Business Investment Relief rules to encourage greater investment into UK businesses.

A consultation was published in September 2015 setting out the detail of the proposals to deem certain non-doms to be UK-domiciled for tax purposes.

This latest consultation document provides an update on those proposals and sets out the detail of proposals to charge IHT on UK residential property. Much, but not all, of the draft legislation for the reforms is attached to the consultation.

If you would like to respond directly to this consultation, the submission deadline is 20 October 2016.

Email to: nondomreform@hmtreasury.gsi.gov.uk

Write to: Personal Tax Team, HM Treasury, 1 Horse Guards Road, London, SW1A 2HQ

CIPP comment

The CIPP represent members on the joint forum on the joint forum on Expatriate Tax and National Insurance Contributions. This is a sub group of the main Employment and Payroll Group and is a partnership between HMRC, employers and professional and payroll advisers that acts to improve liaison between HMRC and its customers for the operation of the tax and NICs system for all international secondments of labour, both inbound and outbound.

If you would like to make any comments about this consultation that you would like fed into the next Expat forum, please email policy using ‘non-doms’ as the subject.