Service of Taxes
In recent years HRMC has been running a very aggressive and successful campaign deeming legal tax avoidance anti-social and morally wrong. Celebrities and large corporations are being pin-pointed and shamed for implementing legal practices that allow them to reduce the taxes being paid to the UK government. Additionally, the campaign is mostly based on using buzz words to bring attention to the issue and one of such words is Non-Doms, which has gotten a very negative publicity. Furthermore, the targeted individuals are often held liable for hiding income which in many cases is merely intricately structured perceived wealth. When combined with forthcoming changes in legislation and reducing limits on ATED legal tax avoidance is being attacked vigorously from all positions.Send Enquiry
The government is rigorously trying to manipulate the housing market in an attempt to reach their targets of increasing housing availability in UK. As a result, there were coordinated attacks on second homes via restricted lending, Stamp Duty Land Tax escalation, and tax relief constraints. Starting from April 2015 non-UK tax residents are held liable to pay capital gains tax on property located in UK.
The gains can be calculated either by time allotment of the gains over the entire ownership period or by valuation reference in April 2015. At this stage the tax rate is 18% for most taxpayers and 28% for higher rate taxpayers. The UK personal allowance is also accessible.
The returns have to be made and tax is payable at the end of the month which follows the completion month. Also, a law coming in power from 2018 a payment on account will have to be made 30 days from the date of sale.
In regards to the budget there has been very little impact on Non-Doms. The common alterations have been made to the rates and allowances and lifetime ISA for individuals aged 18-40 has been introduced which will be topped up by the government annually. Therefore, these funds may only be used to purchase a first home or as a retirement policy. Offshore property developers will now be liable to pay taxes on UK property development profits once the consultation is complete.