Although Phillip Hammond made no reference to the impending changes to the way in which non-doms are taxed in the UK during the delivery of his first (and final) Autumn statement, the statement as published on HMT’s website confirms that the reforms will come into force on 6 April 2017, as planned.
At this this stage, we have no further information as to how the changes will be implemented and we are awaiting draft legislation following the end of HMRC’s further consultation, which closed on 21 October 2016. Draft legislation is expected on 5 December but this may yet be subject to further revision.
Concerns over the narrow time frame for HMRC to iron out any kinks in the draft legislation ahead of the new rules being enacted have been raised by leading professional bodies, the ICAEW and the CIOT. However, on this occasion it appears their concerns may have fallen on deaf ears.
FCTC has experienced advisors who are able to help non-doms and relevant trustees understand their options. With a dwindling time frame in which to review and implement any planning ahead of what is essentially an overhaul of the current regime, we would recommend that advice is sought at the earliest opportunity to ensure any necessary action is taken before it is too late.
For further information on the proposals as they currently stand, please see our ‘reforms to the taxation of non-doms’ blog, on 31 August 2016.