New taxation of non-UK domiciled individuals

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The UK government has introduced significant changes to the taxation of non-UK domiciled individuals, effective from April 6, 2025. Full tax legislation update is published on the UK government official web page.
Key Updates

  • Abolition of the remittance basis: Non-UK domiciled individuals will be taxed on their foreign income and gains, regardless of whether they are remitted to the UK. New Temporary Repatriation Facility regime is introduced for individuals previously taxed on the remittance basis.
  • New 4-year foreign income and gains regime: Recently arrived UK tax residents could benefit from tax relief in the UK on foreign income and gains for their first four years, provided they have not been UK tax residents in the previous 10 years.
  • Updates on Overseas Workday Relief: Amendments will impact tax treatment for individuals working both in and outside the UK.
  • Residence-based inheritance tax (IHT): The current domicile-based IHT system will be replaced, making residence a key determining factor. These changes will have wide-reaching implications for long-term UK residents and non-UK domiciled individuals, especially those with worldwide income and assets.
  • Trusts: New rules could affect taxation of foreign income and gains held within trust structures, therefore, trustees, settlors and beneficiaries should evaluate impact of the legislation update on themselves.
How We Can Assist

  • Analysis of personal tax situation and exploring alternative jurisdictions: For those individuals who are affected by new rules, we can highlight the impact on personal taxation in respect of foreign income and assets and evaluate options such as relocation to the UAE or other jurisdiction tailored along with your goals, offering insights into residency rules, tax advantages, business setup, banking solutions, lifestyle benefits and inheritance opportunities.
  • Trust restructuring and asset planning: Considering new rules in the UK we can provide optimal solutions to change your assets holding structures such us Foundation setup in the UAE or other option.

Feel free to contact our Team in case of any questions.

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