Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what steps he is taking to counter the abuse of non-domicile status for tax purposes.
Summer Budget 2015 announced a far-reaching set of reforms to the way that non-domiciled individuals are taxed in the UK to prevent abuse of the status. These reforms are now before Parliament in the Finance Bill and mean that:
i) Those who are resident for 15 of the past 20 years will become deemed-domiciled for tax purposes;
ii) Those who were born in the UK with a UK domicile of origin, but who have acquired a domicile of choice elsewhere, will no longer be able to claim non-domicile status for tax purposes while they are resident in the UK; and
iii) Inheritance Tax will be charged on UK residential property even when it is owned indirectly through an offshore structure like a company and a trust.