March 7, 2024
2 mins read

Chancellor abolishes non-domiciled status

After her controversial tax status came to light in 2022, she announced she would no longer claim the remittance basis and instead pay UK tax on all her worldwide income and gains…reports Asian Lite News

Chancellor of the Exchequer Jeremy Hunt announced in the Budget on Wednesday that non-domiciled status, the tax status of Prime Minister Rishi Sunak’s wife, is to be abolished.

Hunt said the abolition of the tax regime, used by non-UK residents who do not intend to permanently live in Britain, will raise £2.7 billion per year.

Murty was saving up to £20 million annually by having the status and choosing to pay her taxes on a remittance basis, which meant she was exempt from paying UK taxes on any foreign income and gains unless she brought them to the UK. Murty gets dividends from her 0.93% stake in Infosys.

After her controversial tax status came to light in 2022, she announced she would no longer claim the remittance basis and instead pay UK tax on all her worldwide income and gains.

Hunt announced Wednesday that the non-dom tax regime will be replaced with a new system from April 2025, whereby new arrivals will not have to pay taxes on foreign income and gains for the first four years of tax residency in the UK irrespective of whether they bring the money to UK, after which they will have to pay taxes on worldwide income and gains like any UK resident.

Simon Malkiel, partner at Howard Kennedy law firm, told TOI, “Murty will not be eligible for the new regime as she has lived in the UK for more than four years so will have to pay taxes on her worldwide income and gains, as she is already doing, although she could look at putting her shares into an offshore trust.”

He said the new regime would make the UK less attractive to the very rich as they now had only four years with limited exposure to UK taxes compared to 15. “Ultra HNWs may seek to limit their time in the UK to not be UK residents at all,” he said, adding others will look to restructure their affairs to use things like offshore trusts.

“This will not happen until a year’s time and only if the government remains in power as there will be a general election before then,” he added.

ALSO READ-Hunt may extend energy windfall tax by a year

Previous Story

Hunt seeks to win over voters with £900 tax cut

Next Story

Starmer says budget is ‘bereft of ideas’

Latest from UK News

British exports shine in African infrastructure 

Established 18 years ago, Dints is a London-based project integrator that specialises in connecting buyers, suppliers, logistics providers, and funding partners  A significant partnership between UK Export Finance (UKEF) and British firm

Surrey Bring Back Roach 

Known for his ability to seam and swing the red ball, Roach will link up with the squad ahead of the season opener at Chelmsford and stay with the team till the

Eagles Glide to FA Cup Semis 

Oliver Glasner made a sole change to his side, with forward Jean-Philippe Mateta returning to the team and Nketiah dropping to the bench. …reports Asian Lite News Crystal Palace secured their place in

Morgan: Stokes Now, Brook Later 

England needs to find a new white-ball captain before they begin their 2025/26 home summer with three ODIs and as many T20Is against the West Indies, set to happen from May 29
Go toTop

Don't Miss

Chancellor eyes £360bn pot to invest in economy

Reeves previously announced a review into the pensions sector and

Open letter to Germany Chancellor decries outsourcing asylum

According to the authors, current debate about the plan in