| Non-doms warned of broad HMRC attack |
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| Tuesday, 29 January 2008 | |
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The draft legislation amending the tax position of non-domiciled individuals will hit more people than first thought, affecting everyone claiming to be non-domiciled.
Tax experts at PKF Accountants & business advisers have warned that the legislation includes significant measures which were not included in the Treasury consultation announced in the last Pre-Budget Report (PBR). PKF tax partner Peter Harrup is concerned that the focus to date has been on the £30,000 charge for non-domiciled individuals who have been resident for seven of the previous nine years and that others who have been here less time may mistakenly believe they have escaped for now. Offshore trusts "There are measures in the draft legislation which will affect all non-domiciled individuals regardless of whether they have been here 60 years or 60 seconds", Harrup says. He adds that anyone claiming non-domicile tax status needs to review their tax position urgently, however long they have been tax resident in the UK. "The legislation is particularly likely to hit those with investments held in offshore trusts and companies where past income and gains going back for many years may become taxable if brought into the UK after 5 April 2008,” he says. Harrup warns that, as things stand, non-domiciled individuals may need to act before 6 April or they could be hit with large tax bills in future years. Deliberate omission He calls it particularly frustrating that these measures have only just come to light now in the draft legislation, having been left out of the consultation document published in December. “Cynics might claim that its earlier omission was deliberate in an attempt to restrict the time non-domiciled individuals have to act. My advice to all non-doms is to review of your position with your tax-adviser now so that there is sufficient time to do something about it", Harrup concluded. Related articles Related links |
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