Non-dom timebomb

Non-doms are worried. After years of pressure from all sides, the government has finally decided to change the tax regime for non-domiciled individuals living in the UK. Although the tax changes have still not been finalised, any new rules are likely to apply from 06 April 2008.

Media reports have focused on the £30,000 annual levy for those who still want to avoid paying UK tax on foreign income or gains that are kept outside the UK. However, this levy may only be the tip of the iceberg. The position for non-doms could end up being far worse if the government has its way. There are also likely to be major changes affecting how offshore trusts are taxed.

Non-doms may still have a short time to minimise the impact of the changes by taking certain steps before April 2008.

For information on how you may be affected, or for a review of your circumstances and any tax planning steps you can take now, please contact:

Andrew Goldstone
Tel +44 (0)20 7440 7205
andrew.goldstone@mishcon.com

“Following the recent Budget, the original proposals have been slightly watered down. The position for non-doms is likely to be better than first feared, and hopefully the much publicised exodus of talent and capital will be nothing more than a trickle.” Andrew Goldstone 13/03/2008