Non-domiciled residents are less likely to find the UK an attractive destination if recent government proposals are passed.
The proposed changes will mean that remittance elections could potentially apply for three years instead of one (as it currently stands) and, with a remittance including assets and income that are accrued overseas and then brought into the UK, this would result in a significant tax increase for those affected.
A consultation on the government’s plans, including the possibility of introducing a new category for those who have been a resident in the UK for 17 of the last 20 years, is currently taking place.
Another proposed change would increase the amount paid by those who have resided here for 12 out of the last 14 years from £50,000 to £60,000.
With a highly mobile international population, any changes made to the current one year remittance election will have an impact across the UK; the stream of wealthy individuals coming to our shores and looking to invest outside London (in businesses as diverse as regional football clubs and boutique hotels) could decrease, which would have wider economic implications for other local businesses.