Historically, UK resident non-domiciles were allowed a special tax status; they were taxed on all UK-sourced income and gains but only taxed on offshore income and gains remitted (brought into) the UK. However, since the launch of the £30,000 remittance basis charge in April 2008, and the increase in that charge to £50,000 from 6 April 2012 for those longer-term resident non-domiciles, tax planning in this area has become an even greater priority.
As a UK resident non-UK domicile/deemed domicile you only pay inheritance tax on your UK sited assets however once you have been UK resident in 17 out of the last 20 tax years you will become deemed UK domicile and will usually pay inheritance tax on your worldwide assets. The St. James’s Place Excluded Property Trust (EPT) has been developed to enable non-UK domiciles to pass on accumulated wealth to the next generation and subsequent generations, as well as retaining access to it should the need arise. It provides an effective method of creating an investment fund for chosen beneficiaries, including yourself as the settlor, while preventing the value forming part of your estate for UK Inheritance Tax (IHT) purposes.
Please contact me if you would like to find out more about the St. James’s Place non-UK domicile proposition.
The information on this website is based on our interpretation of the current law and HMRC practice. Taxation legislation and HMRC practice may be subject to individual circumstances or unforeseen changes in the future.
Trusts are not regulated by the Financial Conduct Authority.