Non-Doms - have you taken action?

Posted on 31 January 2017 in IQE Isle of Man

We reported in our December 2016 Newsletter changes to UK Non-Dom status which will come into force from 6 April 2017. All individuals who have qualified for UK resident Non-domiciled status will need to review their position under the new rules.

Trusts

Individuals who become deemed domiciled from 6 April 2017 and who set up trusts and underlying companies on or after this date will see the structures generally treated as tax transparent in the UK.  This could include UK charges on the individual on income and gains from assets in an offshore structure without there necessarily being any cash distributions to the individual.  While Trusts can still offer asset protection and other benefits they are unlikely to provide tax advantages in such situations.  However there is protection provided for trusts established before individuals become deemed domiciled on 6 April 2017 ("protected trusts").

Existing trusts and underlying companies should be reviewed before 6 April 2017 to ensure they achieve optimal protection for the individuals when the changes are introduced.  The changes will impact trusts where the settlor, spouse, civil partner or children can benefit.  If the settlor died before 6 April 2017 and was UK resident but non-domiciled and close members cannot benefit from the trust, the changes will have less effect.

IQE Fiduciary Services

IQE has a history of providing fiduciary services including the provision of a corporate trustee, administration, bookkeeping and maintaining accounting records for Isle of Man trusts.  With many years' experience dealing with a range of trusts for international clients IQE offers a reliable and responsive service built on integrity and expertise.  IQE works closely with professional advisers to ensure that the structures are correctly implemented.

To arrange a meeting or a telephone call, contact Anne Couper Woods on +44 (0) 1624 689596 / email acouperwoods@iqe.im or David Karran on +44 (0) 1624 689581 / email dkarran@iqe.im.