Where are we now? Residence and domicile

We are in limbo. New rules for domicile were due to have been implemented with effect from April 2017 by Finance Bill 2017. They weren’t, but will probably reappear after the general election, and we don’t know when will they start.

In recent years, successive governments have made changes to the residence and domicile rules.

The statutory residence test was introduced with effect from 6 April 2013 so the need to rely on case law and practice is already a distant memory.

Domicile changes have been thought about for even longer than residence changes and a significant change to the taxation of UK resident non domiciliaries was made with effect from 6 April 2008, the introduction of the remittance basis charge for longer term UK residents.

Further changes have been mooted in consultations with the proposed introduction of deemed domicile for all taxes not just inheritance tax. The legislation to bring this about was included in the Finance Bill 2017 but was dropped when the Bill was culled in advance of the general election.

It is likely that whichever party wins the general election, the draft legislation will be reinstated, but when will it start? Will the start date still be 6 April 2017 or will it move to 6 April 2018? What about those non doms who have already taken action in anticipation of the new legislation? What should non doms do now?

Join us for our webinar on 25 May at 11.00, Non Uk domiciliaries update, when Lisa Spearman of Mercer & Hole will give a refresher on the statutory residence test, the rules on non doms as we know them and what may happen in the future.

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