If you’re a UK non-domicile person who has been living in the UK for the long term, time is running out to ensure any non-UK affairs are in order. Following a change to legislation in late 2017, anyone who has lived in the UK for 15 out of 20 years will now be ‘deemed domicile’ for all UK taxes.
This has two serious implications. The first is that anyone caught in this situation will be taxed in the UK on their worldwide income and gains, and be subject to UK inheritance tax (IHT) on worldwide assets. The second, and more complicated, is that offshore assets need to be set up to be compliant with both the US and UK tax authorities.
The new rules took effect from 6 April 2017 and anyone caught in HMRC’s net was given two years to sort out their assets. That deadline is now looming. With just a few months remaining in the current tax year, anyone who hasn’t done so should take action before it’s too late.
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