Director, Alex Picot Trust
Steve Gully is a highly experienced fiduciary and company director with over 20 years of experience in the international financial services industry. He has worked in companies that have undergone acquisition, acquisition of others and have been sold, demonstrating his adaptability and ability to cope with change. With a significant background working in an International Private Bank, Steve has developed detailed knowledge of the UK property markets for residential, commercial, agricultural, investment, and development projects.
Steve is also a proven leader with excellent people management skills, and strong commercial, technical, and solution-oriented skills. He has acted as a trusted advisor to a number of UHNW families and individuals and has held appointments as a board member on regulated financial services businesses, trading companies, and joint venture companies. His areas of expertise include Trust and Fiduciary Management, Wealth Management, Trust Law, Fiduciary Compliance, Family Office, Private Trust Companies, UHNWI/HNWI, Offshore structuring, Discretionary Management, Administration services, and Contentious Disputes.
Understanding the Non-Dom Regime and the 2023 UK Spring Budget
February 20, 2023
Understanding the non-dom regime is crucial to ensure you comply with the tax laws and avoid penalties. Kreston Global HNWI expert, Steve Gully, Director at Alex Picot Trust, discusses the non-dom regime, recent changes, and the impact of the 2023 UK Spring Budget on non-doms with eprivateclient. Read the full article here, or the summary below.
What is the Non-Dom Regime?
The non-dom regime is a tax system that applies to individuals who are not domiciled in the UK. Non-doms have to pay tax on their UK income and gains, but they are not taxed on their foreign income and gains if they do not bring them to the UK.
Non-Dom Remittance Basis
Non-doms can choose to pay tax on the remittance basis, which means they only pay tax on the income and gains they bring to the UK. This can be an advantage for non-doms who have significant income and gains outside the UK. However, they must pay an annual charge to use the remittance basis if they have been UK resident for more than seven years.
Recent Changes to the Non-Dom Regime
In 2017, the UK government introduced new rules that affect the non-dom regime. Under these rules, non-doms who have been resident in the UK for 15 out of the last 20 years must pay tax on their worldwide income and gains. In addition, non-doms who have a UK residential property in a company structure are also subject to inheritance tax.
Impact of the 2023 UK Spring Budget on Non-Doms
The 2023 UK Spring Budget introduced several changes that affect the non-dom regime. Firstly, the annual charge for non-doms who have been UK resident for more than seven years has increased from £30,000 to £60,000. Secondly, the threshold for paying tax on worldwide income and gains has been reduced from 15 out of the last 20 years to 10 out of the last 15 years. Thirdly, non-doms who have a UK residential property in a company structure will now be subject to capital gains tax when they sell the property.
Understanding the non-dom regime is crucial for individuals who are not domiciled in the UK. It is essential to comply with tax laws and avoid penalties. The recent changes introduced in the 2023 UK Spring Budget have significant implications for non-doms, and it is essential to seek professional advice to ensure you understand your tax obligations fully. Remember that the non-dom regime is complex, and the rules are continually changing, so it is crucial to keep up to date with the latest developments.
If you would like to speak to Steve Gully about any impact the changes in the Spring Budget have had on your investments, get in touch.