The 200-year-old tax privilege for wealthy foreigners in the UK is coming to an end. From this date, all UK residents, regardless of their domicile status, will be taxed on their worldwide income and wealth. The remittance basis will be abolished, with the 2024/25 tax year being the last year for exemption claims. However, in return, a new tax system will be introduced that will grant new arrivals to the UK full tax exemption on foreign income and gains for the first four years.
- Furthermore, inheritance tax will be switched to a residence-based system, with a 10-year right of subsequent taxation in the event of departure.
- However, there are transitional arrangements for people who previously used the non-dom status:
- In the tax years 2025/26 and 2026/27, transfers from “Foreign Income and Gains” (FIG) will be taxed at a reduced rate of 12%. A short transitional period is also planned, which will gradually increase the tax burden on repatriation of foreign income.
- If the abolition of non-dom status has negative consequences for you, WILD DUBACH will be happy to assist you in developing alternatives.