All news by: Simon Baylis

Make sure you don’t ‘taint’ your protected trust

Following the changes to the taxation of non-UK domiciled individuals from 6 April 2017, certain offshore trusts enjoy protected status. If you have a settlor interested offshore trust (i.e. where you or certain family members can benefit), you need to take care to preserve this protected status – or face potentially significant tax costs.

Non-dom update

It has been announced by the UK Government that the Finance Bill proposals relating to non-doms that were dropped prior to the election will be reintroduced, and that they will take effect from 6 April 2017 as originally envisaged.  It is not clear when this will occur – the statement simply says "as soon as possible", and that could be as late as October, subject to no change of government.
 

The LLP salaried members rules – Are you compliant?

The salaried members rules treat members of LLPs (but not partnerships other than LLPs) as employees for tax purposes if in substance their relationship with the LLP is akin to that of an employee. Not only does this affect the amount of tax payable, but it is also necessary to operate PAYE which may be a significant administrative burden.
 

Breaking news for non UK domiciliaries

The changes to the taxation of non UK domiciliaries which were to apply from 6 April 2017, have been dropped from the Finance Bill due to a shortage of Parliamentary time in advance of the General Election. When the clauses were dropped, it was announced that they will be brought forward in a Finance Bill as soon as is practicable after the election. It is not clear whether this will be through a further Finance Bill after the election (and potentially backdated in effect to 6 April 2017) or postponed to 6 April 2018.

This could have serious implications for anyone who undertook restructuring prior to the introduction of the new rules, particularly if they are not reintroduced in their current form.

Changes to the taxation of non-domiciled individuals

The UK Government announced its intention to introduce changes in the tax treatment of non-UK domiciliaries in the Summer Budget of 2015. A process of consultation on those changes has been ongoing. There are still some areas where more information is required, and the details are not finalised, but we have a better sense of what the post 6 April 2017 regime will look like.