Non-dom reform missing from Finance Act
After announcing an early election, the government rushed to have the Finance Bill with the 2024 Spring Budget measures passed into law. However, one of the most notable of the reforms was missing. What's going on?
The 2024 Spring Budget included an announcement that the rules for “non-domiciled” individuals would be completely overhauled in 2025, with a residence-based test granting a short period of tax-free overseas income and gains for individuals moving to the UK. A detailed technical note was published shortly afterwards explaining how the new rules would work. However, following the announcement of the 4 July general election, the plans appear to have been abandoned. There are no clauses relating to the reforms in the Finance (No. 2) Act 2024, which received Royal Assent on 25 May 2024. So where does this leave non-domiciled individuals looking to clarify what their tax position will be?
It's likely that there will be some level of reform, regardless of who forms the new government next month. Unfortunately, that’s about all we can say for certain. Abolishing the non-domiciled status has long been a Labour policy and when the Spring Budget’s version of this was published, the party criticised perceived loopholes. So, it’s unlikely that reform will be abandoned completely. Hopefully we will get details of proposed changes in the run up to 4 July to enable planning with more certainty.
Related Topics
-
Don’t overlook the partial exemption annual adjustment
As VAT year ends approach for many businesses, HMRC’s guidance highlights the need to carry out the partial exemption annual adjustment. This is often overlooked but can have a direct impact on recoverable VAT. What do you need to check?
-
MONTHLY FOCUS: USING YOUR COMPANY TO DIVERT INCOME TO FAMILY MEMBERS
Operating a business through a limited company is less tax-efficient than it used to be. However, it can still be a very useful way of diverting income to other family members. In this Monthly Focus, we look at the methods, and associated considerations, involved in doing this.
-
HMRC updates guidance on information notices
HMRC has updated its Compliance Handbook guidance on the use of information notices, with changes made on 18 March 2026. The revisions clarify how HMRC should request information during enquiries and place greater emphasis on proportionality. What does this mean in practice?
This website uses both its own and third-party cookies to analyze our services and navigation on our website in order to improve its contents (analytical purposes: measure visits and sources of web traffic). The legal basis is the consent of the user, except in the case of basic cookies, which are essential to navigate this website.