The UK Chancellor's Autumn Budget on 30 October 2024 has ushered in a new era of tax reform under the Labour Government. This budget, a watershed moment, introduces sweeping changes that will impact UK resident, both domiciled and non-domiciled, businesses, property ownership, and trust structures.
For trustees and settlors, the upcoming changes to the UK tax regime pose significant challenges, particularly for those managing settlor-interested trusts. The impending reforms, combined with an intensified focus from HMRC on tax investigations, create a complex environment where strategic planning is more critical than ever.
For those who may be affected, the recent changes to the UK tax regime for resident non-domiciled individuals (RNDs) are significant. The announcements in the March Spring Budget and the new Labour Government’s proposals have created a pressing need for immediate and strategic planning.
The Labour Party’s proposal to modify non-dom status, including a potential four-year grace period for new non-doms and a projected decrease in revenue generation, has introduced more questions than answers.
