Non-doms no more?

Key points

• Under current proposals the remittance basis of taxation for non-UK domiciled individuals would be abolished replacing it with a residence-based regime.
• Individuals who opt into the new regime will not pay UK tax on any foreign income and gains arising in their first four years of tax residence provided they have been non-tax resident for the last ten years.
• The government will introduce transitional arrangements for existing non-UK domiciled individuals claiming the remittance basis.
• The government announced its intention to move IHT to a residence-based system subject to consultation.

For some time now the non-domiciled regime has been the subject of debate and competing proposals with both the Conservatives and Labour unsurprisingly being sharply critical of the other’s plans. This ongoing political debate has led to considerable uncertainty as to how the ‘non-dom’ regime will ultimately be reformed.

A Budget and subsequent draft legislation...