Advisers with non-dom clients should not stop making arrangements just because of confusion caused by the Treasury’s publication of a taxation consultation paper, an industry commentator has said.
On 21 September, the Treasury apologised for accidentally issuing a preview of the consultation paper Reforms to the Taxation of Non-Domiciles on its website.
Old Mutual Wealth financial planning specialist Rachel Griffin said that non-doms and their advisers should not be too worried, despite a change in the non-domicile test being indicated in the consultation paper.
According to Ms Griffin, it said that: “Rather than having to be in the UK for 17 out of the past 20 years, people will need to be in the UK for 15 out of the past 20 years.”
However, Ms Griffin said those approaching or exceeding the 15-year limit “should still assume they have until 6 April 2017 to make alternative plans or be deemed domiciled for UK IHT purposes and lose the option to choose the remittance basis of taxation.”
Neil Walker, global head of tax for international advisory firm deVere Tax Consultancy, said: “Advisers should be talking to clients who are affected about the point at which they will meet the new test, and preparing them for the increased levels of tax and compliance requirements resulting from the change in the law.
“Where appropriate, this could include advising on restructuring to produce a better tax position before the rules become effective.”