UK: Update on tax reforms in Non-Doms

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The international Chartered Accountancy Firm, Rawlinson & Hunter, have released an in-depth update on the non-domiciled tax status following HM Treasury’s announcement.

The announcement states that the measures that were arranged before the general election in the UK, will soon be reintroduced and backdated to April 2017.

Some of the measures involve a brief schedule that introduces definitive valuation rules for three different types of benefits. The benefits fall under the settlements’ system and transferring of assets abroad legislation.

Another measure is that properties abroad that represent UK residential property will now be brought into the inheritance tax net irrespective of the domicile status of the settlor or owner of the offshore trust.

There are also changes regarding business investment relief in order to clarify the procedure. And so, the non-doms can now invest in businesses in the UK without the assets transferred from abroad becoming liable to UK tax when it is brought into the country. However, one of the measures enacts for a recently disputed HMRC perception of the pre 6th April 2008 legislation.