Mixed Fund Cleansing and Rebasing for Non-Doms – Effective from 6 April 2017

A written statement from the treasury has today confirmed that new tax laws withdrawn from Finance Bill 2017 will be legislated for in the Summer Finance Bill.

All tax legislation intended to apply from the start of the 2017-18 tax year will still be effective from that date.

What Does This Mean for Non-Doms?

Legislation aimed at reforming the taxation of non-doms will be effective from 6 April 2017. See our earlier update for more details.

The new legislation contains valuable transitional rules to soften the impact of these changes.

If you are a non-dom that has been claiming the remittance basis in the UK, or a non-dom that is now deemed domiciled by virtue of being a UK resident for 15 of the 20 years action is required.

It is important you take steps to optimise your tax position.

contact us for expert advice advice on how to establish “clean capital” from a mixed fund, which can then be remitted to the UK tax free.

In addition, newly deemed domiciled taxpayers, who have previously paid the remittance basis charge, will be benefit from the rebasing of their foreign situated capital assets to market value on 5 April 2017, for CGT purposes. Please contact us for advice on how to optimise this valuable tax relief.