The Financial Times and Bloomberg quote Dominic Lawrance on the implications of the changes to the non-dom regime announced in the UK Budget
min readIn the UK Budget, non-doms who've been in the UK for over 10 years and plan to leave could face up to 6% exit charges on trusts.
However, the chancellor made some allowances, such as not applying the usual 40% inheritance tax on certain trusts and reducing the time non-doms are liable for UK inheritance tax after leaving.
After the announcement to close a tax exemption for foreign assets in trusts, some non-doms considered moving abroad.
The government also introduced a temporary tax scheme with lower rates for non-doms' foreign income and gains.
Dominic Lawrance, Private Client Partner, says that while the concessions "were welcome as far as they go, they are a bit of a lipstick on a pig"
The real question was how effective the new system would prove at stopping current non-doms from leaving and drawing new arrivals.
Dom adds that if Labour has got the balance wrong, it will be “terrible news” for the country.
Read the full piece in the Financial Times here.
