The UK’s status as a wealth hub post Non-Dom reform

The UK’s recent tax reforms have sparked concerns among high-net-worth individuals (HNWIs), especially those affected by the end of the non-dom regime. The government's plans to replace the non-dom system with a residence-based tax system starting in April 2025 have led to many questioning whether the UK is still a viable option for wealth management. ????

Here’s a quick rundown:

?? What’s changing? The non-dom regime, which allowed foreign income to be exempt from UK taxes, is being replaced by a 4-year Foreign Income and Gains (FIG) regime. For the first 4 years, new UK residents can benefit from tax exemptions, but after that, worldwide income will be taxed like other UK residents.

?? The Temporary Repatriation Facility (TRF) Non-doms can bring foreign income into the UK at reduced tax rates (12% in 2025/26) under the TRF. But this comes with record-keeping obligations. ??

?? Inheritance Tax (IHT) Impact IHT rules will also tighten, with UK residents facing IHT on worldwide assets after 10 years of residence. ??

The government is listening to concerns but has made it clear that the tax changes are here to stay. Whether this will lead to an exodus of wealthy individuals or spur innovation remains to be seen.

?? The Bottom Line: While some might leave, the UK is still attracting entrepreneurs from the UAE, US, and India. The challenge for the government will be balancing tax reform with maintaining the UK's status as a global wealth hub. ??

?? Read the full analysis on The Golden Wealth Wire: https://civitaspost.com/the-uks-status-as-a-wealth-hub-post-non-dom-reform/

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