Law Society Communities

Our communities help you develop in your professional life and make the most out of your Law Society

Find out more

Private Client Section

Non-dom reforms: Offshore trustees survey

  • Print
  • Share
  • Save

Related images

  • survey

We invite off-shore trustees to complete a brief survey to help identify potential issues with proposed changes to offshore trusts.

Recently published proposals regarding offshore trusts appear to conflict with a previous policy commitment made by the government in 2015, which professional advisers and clients have relied on to structure their affairs.

In the Summer Budget 2015, the government proposed a series of changes to the regime for taxing foreign domiciliaries. Long-term resident foreign domiciliaries were to be taxed as deemed UK domiciliaries. Special trust protections were promised, however, stating that: ‘Non doms who have set up an offshore trust before they become deemed domiciled here under the 15-year rule will not be taxed on trust income and gains that are retained in the trust …’.

However, a change to regulation 19 of the Offshore Funds (Tax) Regulations 2009 is needed to protect gains realised on non-reporting funds held within otherwise protected trusts. If the change is not made – contrary to the government’s policy intent – long-term resident foreign domiciliaries will be taxed on offshore income gains, even though such gains are retained in the trust.

The Chartered Institute of Taxation is therefore asking offshore trustees to complete their short survey. This will help to indicate approximately how many protected trusts with investment portfolios hold non-reporting funds.

  • Print
  • Share
  • Save

Benefits of Membership*

Private Client Section renewals

The Private Client Section will provide you with support, advice, networking opportunities and enable the sharing of best practice with peers.

The current Section Engagement programme has been created in consultation with the Section Advisory Committee and will focus on key issues including:

  • NRB Changes
  • LPA Changes
  • Digital Assets
  • Cross Border Tax
  • IPFDA Cases
  • Care Act
  • Elderly Client
  • HMRC Disputes
  • Inheritance Tax
  • Trusts
  • Estate Administration
  • Capital Gains Tax

These issues will be addressed through a range of activities including: workshops, seminars, conferences, webinars, website, e-newsletters, magazines and a LinkedIn group.

*See Section terms and conditions

Join today