Further Climb-down on Non-Dom Tax Changes
The Telegraph is reporting a further climb-down on the proposed changes. According to senior HM Revenue and Customs officials.
“…non-doms will now be able to elect to make a "deemed sale" to rebase the value of their British and overseas assets.”
This appears only to relate to assets held with in offshore trusts and seems to have arisen following the letter from Dave Hartnett which stated…
“….there will be no retrospection in the treatment of trusts and the tax changes will not apply to gains accrued or realised prior to the changes coming into effect.”
No official announcement has been made and none is likely before the Budget on 12 March. So, if the trustees of your offshore trust were considering a “bed & breakfasting” exercise before 6 April 2008 they may want to put it on hold until the Budget.
Dear Lisa,
Now that the budget is out what is your opinion and understanding with regards to the following:
Quote
...non-dom will now be able to elect to make a "deemed sale" to rebase the value of their British and overseas assets....�
Unquote
Will non-doms UK residents like non-dom settlors of offshore trusts be able to rebase their offshore assets to 6/4/2008?
Thanks
Joe
Joe
See Tax Plus for our full commentary but no we think that the rebasing election only applies to the trustees of offshore trusts.
Thanks
Lisa