Significant changes affecting non-UK domiciled individuals owning UK residential property were due to take effect after 6 April 2017 . As a result of the snap general election, these changes have been put on hold. If a Conservative government is maintained, it is quite likely that the changes will thereafter take effect.
The proposed changes led many clients and their advisers to take action to change and restructure their Jersey-based arrangements. In all likelihood, those changes remain valuable and will be required after the general election. However, for the meantime, the UK government will not introduce the changes to:-
(a) consider non-domicilied individuals to be UK domiciled once they have been UK resident for 15 out of 20 years;
(b) make all UK residential property subject to inheritance tax, including loans for the purchase of such property and security given for those loans; and
(c) alter the tax treatment of offshore trust structures holding UK residential property for non-domiciled individuals.
Please contact Andrew Pinel or any of the Pinel Advocates' team to discuss any issues arising from the above.