Press releases

Budget 2016: Chancellor offers rebasing relief for non-doms ahead of critical 5 April 2017 deadline

17 March 2016

Adam Sheffield, senior tax manager at Deloitte, comments on yesterday’s Budget:

“Non-UK domiciled individuals who have been long-term UK resident should already be aware of the significant changes announced in July 2015. From April 2017, those non-domiciled individuals who have been UK resident for at least 15 of the last 20 tax years will no longer be able to claim the remittance basis of taxation in respect of their non-UK income and gains. Instead, they will be subject to UK tax on their worldwide income and gains and their worldwide estate will fall within the UK inheritance tax net.

“It is expected that those affected will be carefully considering their position over the next year in the lead up to April 2017, particularly with regard to the base cost and tax profile of their non-UK assets. The announcement that non-UK assets of those soon to be ‘deemed UK domiciled’ will be rebased at their 5 April 2017 value is a significant measure. This will help define and report the gains which are taxable from 2017.

“The full detail to follow in Finance Bill 2017 will certainly need to be understood and further consultation will be taking place throughout 2016, but this acknowledgement of the practical difficulties in establishing the UK tax profile of non-UK assets is encouraging and it is hoped that this even-handed approach will be reflected across the new regime.”

End

Notes to editors
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Deloitte’s Budget coverage will be on our dedicated website www.ukbudget.com. You can also follow us on Twitter: @ukbudget where Bill Dodwell, head of tax policy at Deloitte, gives regular views.

Deloitte spokespeople
The following experts from Deloitte are available for comment. Please call the Deloitte Budget Media Hotline on 020 7007 3333 or one of the following numbers to be connected to our spokespeople:

Bill Dodwell – Business taxes and general topics (+44 7771 850673)
Ian Stewart – Economics (+44 7747638531)
Daniel Lyons – Indirect and environmental taxes (+44 7831626417)
Patricia Mock – Personal taxes, including pensions (+44 7715 047665)
Mark Groom - Employment taxes, including pensions (+44 7789 117469)
Phil Nicklin – Property taxation (+44 7798 651930)
Gerry Biddle – Business rates (+44 7952 112967)
Roman Webber – Oil and gas taxes (+44 7801 259262) 

About Deloitte
In this press release references to Deloitte are references to Deloitte LLP, which is among the country's leading professional services firms.

Deloitte LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu Limited (“DTTL”), a UK private company limited by guarantee, whose member firms are legally separate and independent entities. Please see www.deloitte.co.uk/about for a detailed description of the legal structure of DTTL and its member firms.

The information contained in this press release is correct at the time of going to press.

Member of Deloitte Touche Tohmatsu Limited.

Fern Hammond
Deloitte LLP
+44 020 7303 2329
fhammond@deloitte.co.uk

 

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