Dominic Lawrance and Sophie Dworetzsky are quoted by the press on the abolition of non-dom status announced in the Budget
Chancellor of the Exchequer Jeremy Hunt said in his Budget speech yesterday that the “non-domicile” status would be abolished after more than two centuries, with a new tax system based on where people live taking effect from April 2025.
The changes are intended to raise £2.7 billion in tax per year by 2028-29, in addition to the £8.5 billion that non-doms currently pay in various UK taxes each year.
Dominic Lawrance, Partner, is quoted by Bloomberg (subscription required):
Many would expect the changes to be negative for the exchequer, at least in the long run, because they will make the UK unattractive compared to certain other countries, particularly Italy, which are already offering a much simpler and more benign tax regime for wealthy “incomers”. The concern is that the UK’s loss will be Italy’s gain.
Sophie Dworetzsky, Partner, is quoted by Spear's:
"After scrapping the non dom tax regime today, Hunt has promised an alternative system that is fairer and competitive. It is absolutely crucial that these changes are clear, bring stability and create an attractive regime for wealth creators considering a move to the UK.
"The details of the new proposed regime are yet to be clear, but reducing the time period for which there are tax advantages for new arrivals to 4 years seems uncompetitive. However, it seems the new rules will encourage inward investment of currently unremittable offshore income and gains, which will certainly keep legal advisors busy. Ultimately, provided there is a stable regime that encourages clients to live and invest in the UK, there should not be cause for concern.
"All of this depends on the details of the rules during the two year transitional period, and legal advisors will be keeping a very close eye on how these arrangements will work”.
