Will a Conservative Party majority spell changes for the non-dom regime?
With clarity provided over the results of the election, there is now speculation about what a Conservative majority means for the non-dom regime.
Ahead of the election, Labour had announced proposals to eliminate the non-dom tax status. While the Conservatives generally support the non-dom regime, given the fact that it became a prominent issue during the election, it is thought that they will want to distance themselves from this image over the next few years.
Some areas of potential change that have been discussed have to do with the application for those who have acquired their non-dom status from their father and have been living in the UK for virtually their entire lives. Additionally, there is the possibility that the remittance base charging structure upon which the non-doms can choose to pay once resident in the UK for at least 7 years to avoid arising basis taxation may be changed. Additionally, it also remains possible that a larger change in the structure could be announced after reflection and considered thought.
Any proposals will almost certainly be more favourable than those introduced by a Labour government. While reforms are possible, Conservatives will likely aim to maintain many advantages to prevent non-doms from leaving the UK altogether.
The Chancellor has indicated that a new budget will be published within the first 100 days. While it isn’t likely that sweeping change will be announced at that time, it is likely that this will provide insight into what proposals may be on the horizon. At that point in time, we will be able to begin to plan for any changes could affect MASECO clients who fall under the non-dom tax status.