30 June 2022 - Events
First announced in 2015, significant changes to the taxation of UK resident non-doms and non-domiciled owners of UK residential property had been proposed to take effect from 6 April 2017. However, following the calling of the General Election on 8 June, these changes were not included in the Finance Act 2017 which was passed before Parliament was prorogued.
Since then there has been unwelcome uncertainty as to whether the changes would still be introduced and, if they were, whether the implementation of the changes would be delayed beyond 6 April 2017.
It has now been confirmed that the rules will take effect from 6 April 2017 in broadly the form of the draft legislation published in the draft Finance Bill earlier this year. There are a number of technical changes to the draft rules, which will not have significant effects. However, one piece of good news for individuals with mixed fund accounts dating from before 6 April 2008 is that the new cleansing rules will now apply to pre-6 April 2008 income and gains.
Although the draft Finance Bill will still not be formally published until after the Summer Recess, draft clauses have been published and this announcement will provide much-needed certainty for individuals who had planned on the basis of the rules being introduced in the run up to 6 April 2017 and much-needed clarity for those who are wanting to take steps now.
Amongst the opportunities for planning provided by the rules, key time-critical planning points will be taking advantage of the two year period for cleansing of mixed funds, utilising the year long period for trust loans to be put on the right footing and planning for those who became deemed domiciled on 6 April 2017 and those becoming deemed domiciled from 6 April 2018.