Millions to renounce British domicile if Labour win
More than seven million British expats could renounce their UK domicile status if the Labour Party wins next month's general election, an international financial advisory organisation warns.
De Vere Group chief executive, Nigel Green, said if Labour were to win the election expats will need advice about whether or not to switch their domicile status.
"Whilst this move would, of course, likely trigger an exodus of the country's most successful and wealthiest non-dom taxpayers - who contribute a disproportionately high amount both directly and indirectly to the British economy — and also deter top international talent and investors from coming to the UK, it would have other, far-reaching effects too," Green said.
"Historically, some long—term expats have given up their UK domicile in order to legitimately reduce their tax burden, amongst other financial benefits. For instance, should you have a foreign domicile you are not liable for inheritance tax in the UK.
"Therefore, should Labour come to power and abolish the non-dom tax status, I suspect many more expats would seriously consider this route soon after 7 May - whilst they still have the chance to do so.
"However, our experience shows that the vast majority of British expats would prefer not to take on the domicile of another country — even if they have lived there for many years.
"As such, I recommend that if there is a Labour government and plans to scrap the non-dom status go ahead, before switching domiciles is pursued, British expats should consider with a cross-border financial specialist the myriad of other bona fide options that allow these individuals to use their expat status to their financial advantage."
AUTHOR
Nicholas O'Donoghue
Recommended for you
Net cash flow on AMP’s platforms saw a substantial jump in the last quarter to $740 million, while its new digital advice offering boosted flows to superannuation and investment.
Insignia Financial has provided an update on the status of its private equity bidders as an initial six-week due diligence period comes to an end.
A judge has detailed how individuals lent as much as $1.1 million each to former financial adviser Anthony Del Vecchio, only learning when they contacted his employer that nothing had ever been invested.
Having rejected the possibility of an IPO, Mason Stevens’ CEO details why the wealth platform went down the PE route and how it intends to accelerate its growth ambitions in financial advice.
