UK: Changes Push Thousands Of Non-Doms To Leave UK Tax Net
The stats of individuals in the UK claiming non-domiciled taxpayer status fell rapidly from approximately 120,000 to 91,100 in 2016-2017 according to the tax authorities in the UK recent estimates.
Following this, around 50% of the 30,000 who dropped out of non-domiciled status have changed their status to domiciled taxpayer, whereas the remaining 50% have left the UK tax system completely, possibly due to the radical reforms to non-dom taxation introduced in that tax year.
Over the past 10 years, the HMRC has consistently tightened the rules on non-dom tax arrangements. In addition, this is due to the HMRC’s belief that non-domiciled residents are part of society in the UK and so, should also contribute to the Exchequer appropriately.
More recently, some changes concern offshore trusts created by non-doms. They apply to trusts where the individuals who set up said trusts, also known as the settlors, can still benefit from them.