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British ministers reverse the technical elements of non-dom tax changes for workers related to money held in overseas bank accounts when leading the law to enact the October budget through Parliament. It is expected to be.
According to the lawyers, the provisions of the Financial Bill would have meant that they had stayed in the UK in April.
Financial officials on Monday said changes to reverse the impact of the provisions have been pending signing by ministers.
The Ministry of Finance stated: As always, we are considering technical comments on the law as part of this process. ”
The expected changes will be the latest tweak to Prime Minister Rachel Reeves' move to abolish non-dom status, introducing taxes to offshore trusts and taking non-territorial global assets into inheritance tax liability. I did.
Last month, Reeves announced minor changes to controversial policies. Tax advisors announced to encourage the wealthy people to escape and to facilitate the non-dome's income and profits at favorable tax rates.
For years, the UK provided non-territories, wealthy foreigners living in the UK. By charging a “remittance basis,” it provided an opportunity to avoid UK taxes on overseas income and profits.
As part of her budget, Reeves abolished the remittance standard, so the remaining non-domes in the country must pay taxes on new foreign income and profits, like regular UK-dominated taxpayers. yeah.
However, foreign income and profits previously acquired by non-doms based on remittance criteria are intended under the workers' plan to maintain non-tax unless brought into the UK.
As part of the non-DOM changes to the financial bill, the UK would have applied rules regarding capital gains tax on debt, not customary. This change means that the obligation was considered a location, even if the creditor was a resident.
Bank account money is considered liable to the account holder, so depositing it in a foreign bank account creates new debt. This would have been classified as reverting this provision to the UK and therefore paying taxes.
Finance officials said planned amendments to the financial bill would avoid this outcome. They did not specify what changes would be made.
If the change means that money is treated as being brought into the UK by non-doms and brought money into a bank account that is ubiquitous in the world, then it is clearly wrong. “It's.”
Groves thought the change was most likely a “unintended consequence” rather than a strategy. “I don't think the first draft of the law is complete.
Dominique Laurance, a partner at law firm Charles Russell Speechleas, told HMRC earlier this month that it would be “surprising” if non-Doms who used remittance standards were liable for taxes. Ta. “Bank account in his or her name.”
The steps of the specialized institutions representing lawyers and accountants, as well as the chartered tax labs, have both made statements to the HMRC to warn about changes.
The CIOT writes, “There should be no such different and complicated rules introduced in this later stage to determine taxable remittances.”
