Brexit has had far reaching effects, not just on our economy but also on legislation.
Theresa May’s decision to hold a General Election in June and to put through a more streamlined Finance Bill for expediency (see our earlier blog) has meant uncertainty over those sections which were dropped from the Bill in June.
However, the majority of those elements dropped have now been reinstated in the second 2017 Finance Bill, of 8th September. This is currently going through Parliament and expected to be enacted towards the end of 2017.
Amongst its measures are a number which will have a dramatic impact on the non-dom community and which will take effect retroactively from 6 April 2017.
The measures impact on:
- Inheritance Tax (IHT)
- Capital Gains Tax (CGT)
- Non UK Resident Trusts
- Overseas mixed fund bank accounts – again a complex area; ‘cleansing’ of bank accounts possible during a two-year ‘amnesty’
And of course, the status of non-doms who have been long term residents of the UK.
We can review the impact on your personal situation and the best course of action to take through our individual consultations.
Inheritance tax changes
From 6 April these formerly excluded areas will be within the scope of UK IHT:
- A right or interest of more than 5% in a non-UK closely held company or partnership, the value of which is directly or indirectly attributable to UK residential property
- Many loans provided by individuals, trusts, closely held companies or partnerships for the acquisition, maintenance or enhancement of UK residential property
- Funds held or otherwise made available as security, collateral or guarantee in relation to a loan for the for the acquisition, maintenance or enhancement of UK residential property
- Funds realised as a result of the disposal of an interest in a close company or partnership that owns UK residential property.
If you’d like to discuss tax and property matters relating to UK or expat situations, call us on 01761 241 861 or email us today. We will be pleased to advise you or to invite you into our offices in Paulton, near Bristol and Bath, for a consultation.