This month’s Budget certainly had a sting in its tail for non doms who will now be forced to look very carefully at how long they have lived in the country and the money they earn overseas.
The tax loophole which allowed people who have lived in the country for 15 of the last 20 years to avoid paying tax overseas earnings has been closed by the government.
The move was announced in the Budget and will apply from April 2017, which at least gives non doms some notice to get their tax affairs in order before deciding whether to remain in the UK or move overseas. The changes are aimed at generating an additional 1.5 billion in much needed tax revenue.
As long as non doms fall within allowable thresholds in terms of the length of time they have lived in the UK, then they will continue to be able to benefit from not having to pay tax on their UK earnings. This will come as a disappointment those who have opposed wealthy billionaires moving to the UK and taking advantage of the friendly tax regime.
Like most changes in tax rules there will be winners and losers and the move will probably result in some wealthy investors deciding to leave before they reach the 15-year limit rather than be forced to pay more tax.