UK: UK domiciled or non-domiciled

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The Treasury in the UK is planning to restrict claims for non-dom status for tax purposes and must be filed by early November this year for the government to consult.
During the consultancy stage is when the Treasury seeks views on the most effective way to introduce legislation and announcements on reforms regarding non-domicile taxation.

“The government wants to attract talented individuals to live in the UK who will help to contribute to the success of this country by investing here and creating jobs. However, it is only right that those people who choose to live in the UK for a long time pay a fair share of tax, and those who are born in the UK with a UK domicile of origin cannot move abroad and return as a ‘non-dom’.”

– David Gauke, Financial Secretary said to the Treasury.

According to the government, individuals that for minimum 15 out of the past 20 tax years have been a resident in the UK, will be treated as a UK domiciled for tax purposes during the 16th year of their residency. This means that the individual will no longer rely on the non-dom legislation. These new rules are planned to take effect in April 2017.

However, the details for the proposals are still under consultation, including draft legislation to illustrate how the new rules would work in the context of one aspect of the remittance basis for capital gains tax and income tax.