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.

Where We Are Now

Chancellor of the Exchequer, Rachel Reeves, delivered the Autumn Budget on 30 October 2024, announcing several changes that impact the advantages previously enjoyed by non-doms. From 6 April 2025, the existing non-dom regime will end and the concept of domicile as a relevant connecting factor in the current tax system will be replaced by a system based on tax residence.

The 4-year foreign income and gains regime will come into effect for anyone who has not been resident in the UK in the previous 10 tax years. The transitional provision reducing foreign income by 50% will not be introduced.

Transitional provisions reducing the tax rates on previously unremitted income and gains will be introduced. Details on which can be found here.

There will be a reform of the inheritance tax regime with changes to be made from the 6th April 2025 to include:

  • A 10-year residence test, after which global assets will be subject to UK inheritance tax;
  • Excluded property trusts within the UK IHT net, so that everyone who is in scope of UK IHT will have their assets subject to UK IHT.

The freeze on inheritance tax thresholds will be extended for a further two years, until 2030. This means that the first £325,000 of any estate can be inherited tax-free, rising to £500,000 if the estate includes a residence that has been passed to direct descendants, and £1 million when a tax-free allowance is passed to a surviving spouse or civil partner.

Exploring Residency Abroad

At Dixcart, we excel in simplifying the complexities and challenges of relocating to a new country. Our cohesive network of offices around the world ensures a seamless experience, providing you with comprehensive support every step of the way. From your initial decision to move from your current home, through to settling into your new home, Dixcart’s expert team collaborates across our multiple jurisdictions to offer you a unified and smooth transition.

Each Dixcart office location provides unique benefits tailored to your needs. Below, you’ll find a summary of these advantages. Click on the country below to discover the specific services and support we offer, ensuring your move is as effortless and efficient as possible.

Full comprehensive details of the residence and citizenship programmes can be found here, including the benefits of each, the financial obligations and other criteria that might apply.

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

Cyprus

Guernsey

Isle of Man

Malta

Portugal

Switzerland

UK


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