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
Greater consistency across the ASIC adviser exam has helped boost the number of first-time candidates this year with many opting to sit before undertaking a Professional Year.
Financial advice practice Eureka Whittaker Macnaught is in the process of acquiring three firms to boost its annual revenue to $25 million.
AMP has partnered with Dimensional Fund Advisors and SouthPeak IM to launch a suite of investment solutions aimed at expanding retail access to traditionally institutional funds.
The Financial Advice Association Australia has appealed to licensees to urgently update their FAR records as hundreds of advisers are set to depart by the end of the year.
