Reforms to the way UK non-dom are taxed

The United Kingdom government has long-standing tax rules to attract talented individuals to live in the UK and contribute to the country´ success by creating jobs and investing there. These tax rules are known as non-dom (not domiciled).

These rules are an important part of the UK´s internationally competitive tax system and the UK government is committed to this goal. However, it foresees extensive changes to the way non-dom are taxed and will restrict the non-dom status to those individuals who request it for tax purposes. A deemed domicile rule will be introduced to prevent individuals living for extensive periods in the UK from claiming the non-dom status for tax purposes only. This rule will eliminate the perpetuity of the non-dom status.

Most of non-dom individuals who come to the UK leave to another country within a few years from the date they first arrived in the UK and will not be affected by the reform.

The reform will also prevent individuals born in the UK and who live there at birth from claiming and benefiting from the non-dom status.

Once these changes are effective, those individuals who have lived in the UK for 15 of the last 20 years will pay UK taxes on their personal income and profits abroad; meaning that they will pay taxes on their worldwide income, as any other UK resident.

These changes will be affective as of April 2017.