End of permanent non-dom status coming soon, says Treasury
- 2nd October 2015
- Accountancy & Finance
The permanency of non-domicile status will be abolished following the pledge by Chancellor George Osborne in his Budget speech, according to the latest Treasury consultation document.
The report on non-domicile taxation confirms a ‘deemed domicile rule' will soon be brought in.
The changes will mean that long-term residents of the UK will no longer be able to claim non-domiciled status for tax purposes.
This change will also affect individuals who are born in the UK and those who are UK domiciled at birth, because they can no longer claim for tax purposes that they are not domiciled while they are living in the UK.
The document from the Treasury states: "The government... intends that any individual who is born in the UK and has a UK domicile of origin should not be able to claim non-dom status while they are living in the UK, even if they have left the UK and acquired a domicile of choice in another country."
The current non-dom regime has been widely discussed in the news, and although it is a legitimate accountancy procedure, many see it as a loophole that should be closed.
At the moment, UK residents who report that their permanent home is outside the country can use the non-dom status to their advantage and drive down their tax bills.
There is no firm date for the introduction of the new changes that will effectively mark the end of the permanent nature of non-domiciled tax status.
According to a recent article by The Guardian earlier this month, the Association of Chartered Certified Accountants (ACCA) and the…
We’re excited to announce that from Tuesday 1 September, our doors will be reopening to students, and we have put…