Pre-Budget Report
Non-domiciled individuals

The rules on non-domiciled individuals will affect a diverse group that includes sports people, the super-rich, entrepreneurs and employees in financial services, the oil industry, high-technology companies and the health service. Individuals can claim non-domiciled status if the country with which they have the deepest connections, usually their place of birth, is outside the UK.

The rules will affect people who have been living in the UK for more than seven out of the past 10 years from next April. As well as paying the £30,000 charge, individuals opting for non-domiciled status will not be able to claim personal allowances.

The Treasury said it would consult on the question of whether non-domiciled individuals living in the UK for more than 10 years should pay more tax. People with unremitted foreign income of less than £1,000 will be exempt from the new rules.

The Treasury also announced changes to “anomalies” in the rules, which mean that individuals can avoid paying UK tax on foreign income and gains brought into the UK. The proposed changes would remove the “ceased source” rule and reduce the scope to use offshore structures, such as companies and trusts, which convert taxable income and gains into non-taxable payments.

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Levels and bases of, and reliefs from, taxation are subject to change.

This article is for your general information and use only and is not intended to address your particular requirements. Although endeavours have been made to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No individual or company should act upon such information without receiving appropriate professional advice after a thorough examination of their particular situation. Any references made to the Pre-Budget Report may be subject to the Finance Bill becoming law.
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