Emma Ann Hughes  

Lessons to learn from shambolic Finance Bill cull

by Emma Ann Hughes

“This may mean that plans to sell rebased assets may now need to be deferred.

“The government’s decision to halt many of the provisions of the Finance Bill after the date that they were due to take effect is shambolic. 

“Many non-doms would have taken advice and either left the UK, restructured or accepted the additional tax. Now those most prepared, may find that their planning is now defunct. 

“For instance some may have retained assets in their personal name, sold them post 6 April 2017, expecting to be able to claim the rebasing election. 

“This would mean that only the gains post 6 April 2017 would become taxable and the proceeds would be a source of funding in the UK. But now this does not work.”

It is likely these changes will return in a future Finance Bill, whatever the sitting government, and could take effect from 6 April 2018. 

While non-doms who had missed the earlier 5 April 2017 deadline to restructure their affairs ahead of the new rules coming into force may now have time to do this it clearly wasn’t the intention of the government to help these people by taking this action. 

What a shambles. What a mess.

If you were given ample notice and yet still failed to get your clients finances in order in time for a major tax change, leaving them out of pocket, it is quite right that you should have to cough up compensation.

Yet the UK government can change their minds and not even be expected to issue an apology. I am disgusted by it all.