In the statement, the newly established Ministry of Economy and Finance confirms its intent to undertake the reform already announced in March during the Spring Budget by the previous government.
This reform aims to abolish the relevance of the domicile concept for direct taxation on individuals (Income and Gains), effectively ending the special tax regime for so-called resident non-domiciled individuals (“non-doms”) and introducing new rules for new residents (as well as transitional provisions for taxpayers currently benefiting from the regime, in force until the 5th of April 2025).
A new tax system based on the concept of residence, rather than domicile, was also announced for indirect taxes – Inheritance and Gift Tax.
However, to date, uncertainties and doubts remain that the Government will have to address in the coming weeks.
Read the Policy paper | Changes to the taxation of non-UK domiciled individuals
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