Plans were announced at the Spring 2024 Budget on 6 March 2024 to abolish the current 'non-dom' tax regime and move to a residence-based system from 6 April 2025. These changes are very wide reaching and will present opportunities for some and create challenges for others. More detail can be found in our note here. 

In WealthBriefing, Private Wealth Partner, Kyra Motley highlights how change may not be as grim as some might fear. 

“For people moving to the UK, if they have been a non-UK resident for at least 10 years, they get four years to benefit from a new system; they can bring non-UK wealth into the country (income, and capital) and not pay UK tax on this. (UK-sourced income/wealth is taxed). Under the old remittance basis system for non-doms, money that was brought into the UK was immediately taxed.”

“It is simpler to understand and easier to compete with other countries that have temporary residency regimes. You can bring that capital into the UK, for example, and not pay tax on it. We could end up with people moving to the UK as a result of these changes.”

"It is designed for people passing through. For example, a person in 2035 could come to the UK and sell their overseas business. They could then bring the funds into the UK without any UK taxation within a four-year period (therefore until 2039),” Motley said.

Read the full article in WealthBriefing here.