Detail of outcome
A further consultation providing an update on these proposals has been published. The new consultation document also sets out the detail of proposals to charge IHT on UK residential property. This part of the non-dom reforms has not previously been subject to consultation, and the government is keen to hear views on how to make the extended charge work effectively.
This consultation sets out the detail of the proposals that will restrict certain individuals from being able to claim non-domiciled status for tax purposes and seeks views on the best way to legislate the announcements. The consultation document includes draft legislation to illustrate how the new rules would work in the context of one aspect of the remittance basis for income tax and capital gains tax. Draft legislation is also attached on the deeming provision for inheritance tax.
A separate consultation will be published on the proposal to charge UK inheritance tax on those non-domiciled individuals who hold UK residential property indirectly through an offshore structure like a company and/or a trust.