Chancellor Rachel Reeves is exploring reversing a decision to charge UK inheritance tax on the global assets of non-doms, following a spate of departures and lobbying by the City of London, according to government officials and financiers briefed on the discussions.
Commenting on this, Marc Acheson, Global Wealth Specialist at Utmost Wealth Solutions, said:
Whilst any changes that can make the UK more internationally competitive are welcome, the real challenge now is restoring trust and stability, particularly as so many in the non-dom community have already left or are still planning to leave.
The other challenge is how the government plans to balance or navigate any reversal of changes on trusts previously settled by former non-doms, while at the same time proposing to extend Inheritance Tax to business property, agricultural assets, and even pension funds for others.
Anthony Whatling, Managing Director at Alvarez & Marsal, commented:
“The inheritance tax change is perceived by many as the most contentious aspect of the non-dom reforms – complex and globally out of step. It’s little surprise it’s driving people away. If the Government wants to keep wealth – and the business that follows it – in the UK, this is the lever it needs to pull.”
