The new UK Labour Government: An update on expected Non-Dom changes

Written by Andrea Solana, CFP™

Off the back of the published policy paper, we link our updated briefing note which outlines the latest information on the proposed changes and what additional announcements will be expected on the day.

We continue to expect Labour to take aim at capital gains tax during the Budget. There have been open calls to increase the current 20% rate to align with income tax rates (up to 45%) but in reality we may see something falling in between the current rate and income tax rates. We believe that there is a high probability that an increase will happen, and will be part of the Budget announcements, although it is unknown whether any changes will take place with immediate effect or from the start of the new 2025/26 tax year.

As always, we will continue to share insights and things to be thinking proactively about as new information is learned. It remains sensible for those clients who are either already paying tax in the UK on an Arising Basis, holding UK onshore investment assets, or are UK resident beneficiaries of a ‘protected’ trust to take stock of their current unrealised capital gain position from a US and UK perspective and consider whether any changes should be made ahead of the Budget since this is an area that could very likely change with immediate effect following any announcement. Those individuals who can still benefit from the current Non-Dom regime and/or do not have significant UK gains have the benefit of being able to wait for any Budget announcement prior to planning any actions with the knowledge that action steps will likely be needed prior to April 2025.

If you have any questions about the implications of these potential changes on you, please do not hesitate to contact your Wealth Manager.

Important Information

• Nothing in this document constitutes investment, legal or fiscal advice and should not be construed as such.
• This document is provided for information purposes only and is not intended to be relied upon as a forecast, research or investment advice.
• This document does not take into account the specific goals or requirements of any particular individual.
• MASECO gives no assurance or guarantee that the information is accurate or complete and it should not be relied upon as such.
• Any impact from the actual or speculative tax changes contained in this document will depend on the individual circumstances of each client and may be subject to change in the future.  The information is based on our current understanding of those changes.
• MASECO is not a tax specialist and we recommend that anyone considering investing seeks their own tax advice.

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