That was certainly headline grabbing and there has since been a lot of fervour in the professional circles around this topic. While we wait for more detail on this decision, we provide some key takeaways from the Spring Budget 2024 announcement on Thursday 7th March 2024.
What do we know?
The changes are proposed to come into effect from 6 April 2025.
While there has been commentary around this radical revision of the ‘non-dom’ regime, at this stage the proposed new rules are not clear.
When implemented the new rules will apply to individuals moving to the U.K. and non-domiciled individuals already resident in the U.K.
Future foreign income and gains from 2025 likely to be in scope (there may be ways to mitigate but rules need to be clear first)
IHT preserved on existing ‘excluded property’ and protected trusts.
The rules are not expected to impact trusts where settlors are no longer alive.
The rules may also have limited application to trusts where settlors are not beneficiaries.
A General election is due before April 2025 and therefore, it is worth noting that all of the above could change if Labour adopt a different approach; albeit the current Government have attempted to steal a march on one of Labour’s policy objectives on this front.
For now, the team at Alex Picot Trust will watch this evolving landscape.
Steve Gully, Director, said:
We expected changes to the current regime would occur either in this Parliament or the next, and it is helpful having a long lead time before April 2025.
There is no definitive information yet to make any decisions on future actions but when that does become available we will liaise with relevant advisors to determine if any action is required.
As a reminder Alex Picot Trust does not offer advisory services on matters of U.K. taxation.
Please do speak to your usual contact person if you have any questions.
