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Shipowners to be hit as UK abolishes permanent non-dom tax status
The UK is to abolish its controversial permanent non-domiciled (nom-dom) tax status, which benefits many shipowners.
1 Min Read
Kalyakan - stock.adobe.com
In the UK budget 2015 Chancellor George Osbourne announced changes to the non-dom tax scheme, which has allowed wealthy residents to live in the UK, but not pay UK taxes on their global earnings.
The tax status will not be abolished altogether but from April 2017 individuals who have lived in the UK for 15 of the last 20 years will no longer be able to claim it. The rules would also apply to inheritance tax.
"It is not fair that non-doms with residential property here in the UK can put it in an offshore company and avoid inheritance tax. From now on they will pay the same tax as everyone else," said Osborne.
The change is expected to generate GBP1.5bn in tax revenues annually. Tax revenue gains questioned
Advisory firm Moore Stephens noted the changes to the rules were short on details with a consultation on the new rules to be published in Autumn forming part of a new Finance Bill in 2016. “We therefore have time to plan for the future,” Moore Stephens said on its website.
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