The Conservative win could signal a change in the way non-domiciles living in the UK are treated from a tax perspective. Plans to abolish hereditary domicile status could lead to more global assets becoming liable to UK inheritance tax (IHT) upon death.

Currently the UK deemed domicile rule is based on the number of years someone is in the UK. If someone is in the UK for 17 out of the last 20 tax years then they will become deemed UK domiciled for IHT purposes, and all worldwide assets will be subject to UK IHT on their death. This calculation could now be subject to change resulting in more people being UK domiciled for IHT purposes.

Portrait of Rachael GriffinRachael Griffin, financial planning expert, Old Mutual Wealth; “The number of wealthy individuals who spend a considerable amount of time in this country is increasing. These individuals may be unaware of the deemed domicile rules. The anticipation around the potential changes may create concern and uncertainty. Non domiciles living in the UK should have the ability to plan their finances in the same way as those who are domiciled in the UK do, so trust planning and the use of offshore bonds as legitimate ways of tax planning could help non-domiciles start to plan ahead of future changes in policy.”

For more information contact

Michael GlenisterOld Mutual Wealth020 7778 963807469