Planning as Non UK domiciled
As the UK transitions away from a domicile system of taxation to one based on residency, don’t let key deadlines pass before taking positive action. Elite experts are here to help.
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Overview of the Elite service
Take a domicile check, understand if you may lose, or acquire, a UK domicile in future, act before rules are tightened, invest tax efficiently for you and future generations and plan for potential future UK residency.
Who is Elite intended for
Are you a British citizen but with family origins overseas? Did you move to the UK at a young age? Where you UK born to non UK parents? Are you contemplating moving to the UK for the first time? Is only one parent a UK national? Are you married to a non UK national. If the answer to any of these questions is ‘Yes’, please allow Elite to carry out a domicile check.
What Elite could do to help
Carrying a British passport or being born in the UK does not automatically create the burden of a UK domicile. Similarly, to be born outside the UK does not necessarily result in being non domiciled. This is a complex area, requiring detailed planning, often seeking independent legal Counsel option. An initial assessment by Elite in house experts is the place to start. If required, we accompany you through the process of constructing a personal statement and obtaining Counsel opinion, giving you peace of mind should your status ever be challenged in years to come. If you are non domiciled, the planning must begin with some purpose and urgency. With significant rule changes expected soon, Elite will recommend a suitable structure to help shelter family wealth from inheritance tax for generations to come. Often, income tax and capital tax may also be mitigated when you move back to the UK. Early planning is vital, not only to build tax credits, but also take advantage of current legislation.
Case Study
Devesh (42), born in the UK to parents of Indian origin, lived and was educated in the UK, until leaving university at age 25. Qualified in law, and having worked in Singapore, Hong Kong and China, he is senior partner at a law firm in Dubai. He is married to Amrita (42) and the couple have no children. They have a property in Hong Kong and UK, both rented out, as well as owning their main residence in Dubai. They are not certain where they will eventually retire but, both carrying British passports, feel the UK is most likely. Other assets include a significant liquid investment portfolio and there is some likelihood of a substantial inheritance in the future. Surplus income is being saved regularly each month.
Topics of discussion
- Domicile check for Devesh and Amrita
- Consider family residential history including time parents were in UK
- Is a formal Counsel opinion advisable?
- What are future intentions with property?
- Rental yields, capital gains, possibility of sale and when
- Method of ownership – own names, company, family trust
- Discuss UK Spring budget proposals relating to Foreign Income & Gains (FIG) and residency based system for FIG and UK inheritance tax
- How is current liquidity invested and in what structure?
- Directly into assets or using a tax blocker?
- Has a tax efficient trust been considered?
- How much is surplus income and how is it invested?
Whilst being confident of the accuracy of information contained in this website, it must not be replied upon when making any personal decisions, particularly in regard to taxation and financial planning matters. Appropriate and bespoke financial and taxation advice, relevant to your own circumstances, should always be sought.