Robert, described Reeves’s Budget as ‘an iceberg to the non-dom’s Titanic’.
Brodrick adds, ‘Barely a mention in Rachel Reeves’ lengthy speech, but beneath the surface lay a 37-page Technical Note and 103 pages of draft legislation both of which contain some nasty surprises.
‘The Technical Note makes it clear that it is all based on draft legislation and could be subject to change by Parliament, but at first glance I do not see anything that will prevent the exodus that has already started and persuade long-term resident non-doms to stay in the UK. The Inheritance Tax consequences of becoming long-term resident will be enough to put many people off staying for more than 10 years.
‘Will the regime for “new arrivers” be attractive enough to fill the hole left by departing non-doms? The new regime will enable individuals arriving in the UK after at least 10 years of non-UK residence to claim exemption from tax on their foreign income and gains for up to four consecutive years but unfortunately, I think this is unlikely to do enough to encourage people to bring wealth to the UK or to put down deep enough roots to stay here and invest for the long term.’
The full article has be linked below with kind permission.
https://spearswms.com/wealth/what-does-the-budget-mean-for-the-wealthiest-uk-taxpayers/
Robert advises on tax, trust and estate planning for wealthy individuals, their advisers and trustees. He acts for a wide range of clients including the owners of landed estates, business people, non-domiciliaries (non-dom / non-doms) and international families with assets in multiple jurisdictions.
For more information or bespoke advice contact Robert, or your usual Payne Hicks Beach contact.
