Six year-end tax issues for non-doms in the UK
By Kirsten Hastings, 31 Jan 17
The approaching tax year-end applies equally to those born in the UK and to foreign expats living there. This year, expats may have even more to consider given the new non-dom rules coming into force from 6 April 2017, warns Old Mutual Wealth’s financial planning expert, Rachael Griffin.
Utilise Capital Gains Tax (CGT) allowance
Foreign expats living in the UK are liable to UK CGT on their UK and world-wide investments (those on the remittance basis are liable to UK CGT on their UK assets only).
This means they are entitled to an annual tax-free allowance, currently £11,100 ($13,917, €13,008).
Making the most of the annual allowance by selling investments and recognising the gain on a regular basis could prove highly effective.
Utilise annual gift allowance
On death, foreign expats are liable to UK IHT on their UK assets. They are also liable to UK IHT on their worldwide assets if they have been in the UK for 15 years – as explained above.
Utilising the annual gift allowances of £3,000 a year can be an effective way of passing wealth on to future generations bit by bit, rather than waiting and storing up future IHT problems.
Tags: IHT | Non Doms | Old Mutual
