Time is fast running out for non-UK domiciled individuals living in the UK to sort out their tax affairs ready for major changes in April, warns Top 40 accountants Bishop Fleming.
UK residents from overseas could find that their tax status changes dramatically in just two months’ time.
For tax purposes, a domicile is the country someone considers to be their home, or is the country they intend to return to when not living there. Being non-UK domiciled means a person does not have to pay tax on their overseas income, unless they remit it into the UK. This option is restricted from 6 April, and Bishop Fleming is concerned that individuals potentially affected may not realise the implications.
Bishop Fleming partner, Alison Oliver, commented: “If you are a non-domiciled person living here and you have done so for 15 out of the last 20 years, you will no longer be able to opt for the ‘remittance-basis’ from April. That means you will be liable to UK tax on all your income, gains and assets wherever they are in the world.”
Mrs Oliver added: “The changes also mean that if you were born in the UK, but you later acquire a domicile of choice outside the UK, you will likely remain liable to UK tax on all your worldwide income, gains and assets whenever you return here.”
The Bishop Fleming partner advised those affected to urgently review their financial needs and bank accounts, and consider revaluing their overseas assets to April 2017 values.
“In light of all of these changes, there is very limited time to consider what action to take, but taking no action at all could result in a substantial tax bill for the unwary,” warned Mrs Oliver.
Philip Hammond's Spring Budget, with its U-Turn on National Insurance Contributions (NICs), alienates the very businesses the government should be encouraging, claims Top 40 accountants, Bishop Fleming. Matthew Lee, Managing Partner at Bishop Fleming, described…