Tax & Accounting News

HMRC Announces Changes To Non-Domicile Draft Legislation

19/02/2008

HM Revenue & Customs has announced details of some changes to the draft legislation in relation to the taxation of non-domiciled individuals. The changes are summarised as follows:

• Individuals will not now be required to disclose additional details of the sources of their offshore income.
• The tax changes in relation to capital payments from offshore trusts to non-domiciled beneficiaries will not now apply to gains that were accrued or realised before the date the changes come into effect.
• If additional funds need to be remitted to pay the £30,000 charge, these will not now be treated as extra taxable remittances.
• The new 'remittances in kind' rules will be relaxed to allow works of art to be brought into the UK without attracting a tax charge.

Although the amendments are described as a 'clarification', they directly contradict the draft legislation and other related pronouncements. The continued lack of definitive draft legislation so near to the proposed commencement date is highly unsatisfactory, making planning extremely difficult, so specialist advice should be taken in each case.

Please contact us if you wish to discuss the impact of the proposals in your particular circumstances.

 

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