Consultation heralds end of permanent non-dom status
Proposal reveals government plans to abolish permanent non-dom status
Proposal reveals government plans to abolish permanent non-dom status
THE ABOLITION of the permanency of non-domicile status is now set to be introduced, following George Osborne’s pledge to make the change during his Budget speech.
A Treasury consultation document on non-domicile taxation confirms that a ‘deemed domicile rule’ will be introduced. This will mean that long-term residents of the UK can no longer claim to be not domiciled for tax purposes, effectively abolishing the permanency of non-dom status.
The new rules will also ensure that individuals who are born in the UK and who are UK-domiciled at birth will not be able to claim that they are not domiciled for tax purposes while they are living in the UK.
“The government … intends that any individual who is born in the UK and has a UK domicile of origin should not be able to claim non-dom status while they are living in the UK, even if they have left the UK and acquired a domicile of choice in another country,” the document reads.
In George Osborne’s Budget, he pledged that the permanent state of being a non-domicile would be abolished. In the run-up to the general election, Labour said it would eradicate the status entirely.
The regime, which allows UK residents to pay tax on their UK income but deem their permanent home to be outside the country, has been the subject of much controversy in recent years amid fears that wealthy non-domiciles use their status to drive down their tax bills.
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