Guidance for UK Non-Doms Considering a Move Abroad

Explore guidance and expert advice for UK non-doms, UK Residents and Tax Residents considering relocating abroad, with updates on tax changes and benefits across Dixcart’s global offices.

Essential Insights for UK Non-Doms Planning International Relocation

Until recent announcements, the UK has been an attractive destination for non-UK domiciled individuals (non-doms) due to its favourable remittance basis tax regime. This regime allowed non-doms to only pay UK tax on their UK income and on foreign income and gains that were remitted to the UK, making it an appealing option for many.

However, the landscape is shifting. The recent UK Spring Budget has proposed changes that could impact the advantages previously enjoyed by non-doms. These changes, while still in the proposal stage, are prompting many individuals to reconsider their tax residence options and explore moving abroad.

The changes may also provide some interesting opportunities for UK resident domiciled individuals who may be considering a move overseas.

Where We Are Now

Update: 13/06/2024

The Labour Party has launched its election manifesto, which includes several pledges that could impact non-doms. Key proposals include:

1. Abolishing non-dom status: This will be replaced with a modern scheme for people genuinely in the country for a short period. No further details are provided in the manifesto, but it is expected to resemble Conservative policies announced in the Spring Budget. We understand that under Labour’s proposals, the 50% reduction to tax on foreign income for 2025-26 would not be available.

2. Ending the use of offshore trusts to avoid inheritance tax: This was not part of the Conservative policies announced in the Spring Budget and would likely also impact deemed domiciled taxpayers who have already created protected settlements, which would otherwise avoid UK taxation.

3. Aligning the taxation of carried interest: This would be adjusted so it is subject to income tax rates instead of the lower capital gains tax rates.

4. Introducing an additional 1% SDLT charge on non-residents buying UK property.

Update Note: This section will be updated regularly to reflect the latest information and developments, check back regularly for the most current updates. For archived updates, please visit our update history page.

How Can Dixcart Help?

At Dixcart, we understand the complexities and challenges that come with relocating to a new country. Our extensive network of offices around the world is here to assist you in making an informed decision about your potential move. Each of our jurisdictions offers unique benefits, and our expert teams are equipped to guide you through the process.

Below, you’ll find a summary of the benefits offered by each Dixcart office location. Click on the country to learn more about the specific advantages and services available.

To learn more on what to consider when exit planning in the UK, read our article: Ceasing to be UK Tax Resident – Don’t Get it Wrong!

Cyprus

Guernsey

Isle of Man

Malta

Portugal

Switzerland


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