The time around an election is always punctuated with uncertainty. What will the new government promise? Which promises will they deliver on? Which will they not?
During their campaign the Conservative party’s manifesto very publicly stated it was committed to raising taxes and to tackling tax avoidance. It is now looking increasingly likely that, at least as far as The Treasury is concerned, this could be one of the new Conservative government’s lead policies in the short-term.
In the public’s view at least the UK’s ‘non doms’ are at the heart of this perceived avoidance culture. Should the new government follow through with its pre-election threats, it may be time for ‘non doms’ to start thinking about whether this might be time to transfer their assets offshore, particularly as it could become increasingly difficult for them to preserve the tax privileges associated with their ‘non dom’ status.
One way to do this could be to transfer a portion of their finances to offshore trusts. Although every case – and indeed trust – is different, offshore trusts can be a way to both secure some exemption from inheritance tax and continue to benefit from some of the tax advantages their current ‘non dom’ status affords them.
If you are currently living in the UK under non-domicile status and would like to discuss the options open to you, please contact us on +44 (0)2072409971 or email: firstname.lastname@example.org.
Written by David Snell, a former Partner