{"id":3141,"date":"2024-07-31T09:54:01","date_gmt":"2024-07-31T09:54:01","guid":{"rendered":"https:\/\/www.robbtax.co.uk\/blog\/?p=3141"},"modified":"2024-07-31T09:54:18","modified_gmt":"2024-07-31T09:54:18","slug":"non-doms-set-to-face-new-inheritance-tax-hurdles","status":"publish","type":"post","link":"https:\/\/www.robbtax.co.uk\/blog\/non-doms-set-to-face-new-inheritance-tax-hurdles\/","title":{"rendered":"Non-doms set to face new Inheritance Tax hurdles"},"content":{"rendered":"

Starting next year, non-doms will face a tougher tax climate as Labour takes steps to fix what they see as outdated tax perks and overhaul Inheritance Tax (IHT) rules.<\/p>\n

<\/p>\n

Before the election, former Chancellor Jeremy Hunt revealed in the Spring Budget that the UK would be eliminating non-dom status and gradually phasing out the remittance basis.<\/p>\n

The new Government is set to strengthen these plans with a \u201cmodern scheme\u201d designed solely to support those who are \u201cgenuinely in the country for a short time.\u201d<\/p>\n

However, unlike the Conservatives, Labour does not intend to have the transitional phase, which offered a 50 per cent reduction in tax on foreign income for individuals losing access to the remittance basis during the first year of the new regime.<\/p>\n

The new regime<\/strong><\/p>\n

The new resident-based regime for IHT is set to come into force on 6 April 2025, but full details on rebasing dates will not be available until the next Budget.<\/p>\n

Domicile will no longer be the primary factor for inheritance tax liability. Instead, it\u2019s proposed that inheritance tax will automatically apply to an individual’s global estate after they have been a UK tax resident for 10 years.<\/p>\n

There will also be a 10-year \u201ctail\u201d for those who leave the UK after reaching this milestone.<\/p>\n

These changes will impact the range of property subject to UK inheritance tax for individuals and trusts.<\/p>\n

The new rules will not be applied retroactively, so any estates of individuals who pass away before the effective date will not be affected.<\/p>\n

Additionally, there will be no further public consultation on these changes, as the Chancellor will consider responses from the previous Conservative non-dom consultation.<\/p>\n

There will be a four-year foreign income and gains (FIG) regime, which will provide 100 per cent relief on FIG for new arrivals to the UK during their first four years of tax residence.<\/p>\n

This does not apply if they were a UK tax resident in any of the 10 years immediately before their arrival.<\/p>\n

UK residents who don\u2019t qualify for the four-year FIG regime or choose not to use it will face capital gains tax (CGT) on their foreign gains as usual.<\/p>\n

Temporary repatriation facility<\/strong><\/p>\n

Starting April 2025, income and gains within settlor-interested trust structures will no longer be tax-protected.<\/p>\n

A new temporary repatriation facility (TRF) will be offered to individuals taxed on the remittance basis.<\/p>\n

Those who have used the remittance basis before will still be able to bring back foreign income and gains accrued before 6 April 2025, and benefit from a reduced tax rate for a limited period after a remittance basis ends.<\/p>\n

The rate and duration of this facility will be designed to make it as appealing as possible.<\/p>\n

What\u2019s next?<\/strong><\/p>\n

Further details on the regime will come in due course.<\/p>\n

The first Labour Budget of this parliament is set to take place on 30 October 2024, which should confirm their plans and provide further details.<\/p>\n

Contact our team if you have any questions.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Starting next year, non-doms will face a tougher tax climate as Labour takes steps to fix what they see as outdated tax perks and overhaul Inheritance Tax (IHT) rules.<\/p>\n","protected":false},"author":1,"featured_media":3144,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11,89,95],"tags":[],"yoast_head":"\nNon-doms set to face new Inheritance Tax hurdles - Accountants in Sutton Coldfield<\/title>\n<meta name=\"description\" content=\"Starting next year, non-doms will face a tougher tax climate as Labour takes steps to fix what they see as outdated tax perks and overhaul Inheritance Tax (IHT) rules.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.robbtax.co.uk\/blog\/non-doms-set-to-face-new-inheritance-tax-hurdles\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Non-doms set to face new Inheritance Tax hurdles\" \/>\n<meta property=\"og:description\" content=\"Starting next year, non-doms will face a tougher tax climate as Labour takes steps to fix what they see as outdated tax perks and overhaul Inheritance Tax (IHT) rules.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.robbtax.co.uk\/blog\/non-doms-set-to-face-new-inheritance-tax-hurdles\/\" \/>\n<meta property=\"og:site_name\" content=\"Accountants in Sutton Coldfield\" \/>\n<meta property=\"article:published_time\" content=\"2024-07-31T09:54:01+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-07-31T09:54:18+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.robbtax.co.uk\/blog\/wp-content\/uploads\/2024\/07\/shutterstock_2055748688-1024x683.jpg\" \/>\n<meta name=\"author\" content=\"Robb & Co Chartered Accountants in Sutton Coldfield\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Non-doms set to face new Inheritance Tax hurdles\" \/>\n<meta name=\"twitter:description\" content=\"Starting next year, non-doms will face a tougher tax climate as Labour takes steps to fix what they see as outdated tax perks and overhaul Inheritance Tax (IHT) rules.\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Robb & Co Chartered Accountants in Sutton Coldfield\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.robbtax.co.uk\/blog\/non-doms-set-to-face-new-inheritance-tax-hurdles\/\",\"url\":\"https:\/\/www.robbtax.co.uk\/blog\/non-doms-set-to-face-new-inheritance-tax-hurdles\/\",\"name\":\"Non-doms set to face new Inheritance Tax hurdles - 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