Budget brings clarity for UK non-doms

The latest Budget proposals bring clarity and finality to the question of taxation for the UK’s non-domicile (non-dom) community.

Although no further concessions have been announced in the Budget, the rules now strike a better balance between competitiveness and fairness for foreign investors and their contribution to the UK economy.

Under the new non-dom tax rules, all non-domiciled individuals resident in the UK for seven years or more will pay an annual £30,000 charge or choose to pay tax on all overseas income.

The charge will be creditable under double taxation agreements so non-doms won’t pay tax twice.

The charge will be creditable under double taxation agreements so non-doms won’t pay tax twice.

Children of non-doms will avoid the charge, meaning savings held abroad will be free from taxation.

Individuals with offshore income under £2,000 are also exempt and will not lose their personal allowance.

The Budget also laid out changes to the rules on trusts to protect competitiveness.

UK assets of offshore trusts will be taxed on the remittance basis and offshore trusts will not be taxed on gains arising before the changes.