SPRING BUDGET 2024

Yesterday’s budget appears to have some interesting news for those who we refer to as FISICs – Financially Impacted by Some International Checkpoints.

Non-Domiciled Individuals

The government is going to abolish the current tax regime for non-UK domiciled individuals.

It will be replaced with a residence-based regime as and from 6 April 2025.  If Labour get in, I suggest they may go further. So for those currently or planning to move to the UK,  expect more developments if the election results in a change of government.

The budget announced a change for anyone who has been tax resident in the UK for more than four years, will pay UK tax on their foreign income and gains, regardless of their domicile status.

New arrivals will have a four-year relief provided they have been non-tax resident of the UK for the last ten years.

There will be transitional arrangements for existing non-domiciled claiming the remittance basis. This will include an option to rebase the value of capital assets to 5 April 2019 and a temporary 50% exemption for the taxation of foreign income for the first year of the new regime (2025-26).

There is going to be two-year Temporary Repatriation Facility for individuals who have paid tax on the remittance basis prior to 6 April 2025 to bring previously accrued foreign income and gains into the UK at a 12% rate of tax.

Eligible employees will also be able to claim Overseas Workday Relief in their first three years of tax residence for income from employment duties conducted overseas.

The government also intends to move to a residence based regime for Inheritance Tax and will consult in due course on the best way to achieve this. No changes to IHT will take effect before 6 April 2025.

Check with Montfort on how you may be impacted.

Capital Gains Tax (CGT)

Higher rate CGT is coming down from 28% to 24% from 6 April 2024. The lower rate 18% for any gains that fall within an individual’s basic rate band remains.

NEW UK ISA

The UK ISA will be a £5,000 allowance in addition to the existing ISA allowance and will be a new tax-free product for people to invest in UK-focused assets.

 NEW British Savings Bonds

A new National Savings and Investments opportunity will be launched in April 2024 offering a guaranteed interest rate, fixed for three years.

 Transfer of Assets Abroad

For income arising to a person abroad from 6 April 2024, individuals cannot use a company to bypass anti-avoidance legislation, known as Transfer of Assets Abroad (ToAA) provisions, in order to avoid UK income tax.

As always check with Montfort as to how you may be impacted. Contact us on 01483 202072 or info@montfort-intl.com

 

 

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