Tax experts at PKF Accountants & business advisers have warned the draft legislation amending the tax position of non-domiciles, including significant measures which were not included in the HM Treasury consultation announced in the last Pre-Budget Report (PBR), will hit more people than first thought – in fact, everyone claiming to be non-domiciled will be affected.
Peter Harrup, PKF tax partner, is concerned the focus to date has been on the £30,000 charge for non-doms who have been resident for seven of the previous nine years, leading others who have been less time in the UK to mistakenly believe they have escaped for now.
‘There are measures in the draft legislation which will affect all non-domiciled individuals, regardless of whether they have been here 60 years or 60 seconds,' Harrup said. 'Anyone claiming non-domicile tax status needs to review their tax position urgently, however long they have been tax resident in the UK.’
He said the legislation was particularly likely to hit those with investments held in offshore trusts and companies where past income and gains going back for many years might become taxable if brought into the UK after April 5.
Further reading:
Comments