Autumn Budget - PwC comments on changes to 'non-dom' rules

Commenting on changes to non-domiciled rules, Alex Henderson, tax partner at PwC, says:

“There was mixed news in the Budget for non-domiciled taxpayers. As expected, the government is pressing ahead with reforms to the regime removing the concept from the tax system. There will be an extension in the period and scope for the temporary repatriation facility to three years allowing a 12-15% tax rate for spending and investment in the UK. Relief for employees and executives newly coming to the UK will also be extended in time to four years but limited in amount to exclude the highest earners.  

“The Government will also move forward with changes to the inheritance tax (IHT) regime for non-domiciled taxpayers bringing them into the IHT net after 10 years and remaining within it for up to 10 years after they leave. The exposure of capital assets which have no connection to the UK to a 40% tax charge is likely to be a matter of considerable concern to the wealthiest who will factor it into their plans regarding how long they will stay in the UK.”