However, the then Chancellor in the Summer Budget 2015 announced major changes to the way non-domicile individuals are taxed on their offshore income and gains.
Now, non-domicile individuals who have been resident in the UK for 15 out of the last 20 years, or individuals who were born in the UK and had UK domicile at birth (even if they later changed it), will be deemed to be domicile in the UK and they will not be able to elect for the remittance basis of taxation.
This creates a significant need for specialist financial advice.
At KWM, we have access to the St. James’s Place Excluded Property Trust (EPT), which has been developed to enable non-domicile individuals to pass on accumulated wealth to the next generation and subsequent generations, as well as retaining access to it should the need arise.
It provides an effective method of creating an investment fund for your chosen beneficiaries, including yourself as the settlor, while preventing the value forming part of your estate for UK Inheritance Tax purposes.
This is a complex area, and if you would like to find out more, please contact us.
The information on this website is based on our interpretation of the current law and HMRC practice. Taxation legislation and HMRC practice may be subject to individual circumstances or unforeseen changes in the future.
Trusts are not regulated by the Financial Conduct Authority.