Non Domicile Law Change Reminder.
As a foreign national living in the UK, you may have forgotten George Osborne’s Summer Budget in 2015.
In 2015, Mr Osborne confirmed that the law would change in April 2017 for non-domiciles resident in the United Kingdom who currently only pay inheritance tax in the UK on their UK assets. A factor that encourages many foreign nationals to live in the UK.
This is perhaps why so many wealthy foreign nationals and global stars live in the UK. The UK is a tax haven to non-domiciles.
Under current laws, if a foreign national has lived in the UK for 17 of the last 20 years they are then deemed to be domicile in the UK.
6th April 2017 Domicile Change
The law changes that if a foreign national has lived in the UK for 15 of the last 20 years they are then deemed to be domicile in the UK. This is thought to affect around 100,000 individuals.
In addition, if you were born in the UK but your parents were not, i.e. you acquire a domicile or origin outside the UK, if your parents become domiciled here you will also automatically be deemed UK domicile whilst your parents are in the UK too. This blocks those who were born in the UK, have UK passports yet claim non-UK domicile because their parents are foreign nationals but currently living in the UK.