New tax rules relating to non-domicile residents are now in force, and take retrospective effect from 6th April 2017. Any person who has been resident in the UK for more than 15 of the previous 20 years will be deemed domiciled in the UK for tax purposes. Inheritance tax is also now chargeable on all UK residential properties held indirectly through an offshore entity (company, overseas partnership or a trust).
In addition the HMRC has announced proposals to speed up Capital Gains Tax payments for residential property, suggesting payments will need to be made within 30 days of a sale, on a ‘payment by accounts’ basis as opposed to annually as part of the self-assessment process. The proposals are out for consultation until June, and if accepted will take effect from April 2020.
The UK economy remains stoic with consumer confidence rising over the first quarter of the year. The GfK consumer confidence tracker was at its highest level in a year in March, the Office for National Statistics (ONS) reports employment levels are at a record high, and for the first time in over a year, wage growth has begun to outperform inflation. Inflation fell back to 2.5%1 in March (the larger than expected fall casting doubt on whether the Bank of England’s anticipated rise in interest rates in May will be put on hold). The strength of sterling against the US$ continues, reaching a post-Brexit high of $1.43 (18 April), just 3% below its pre-Brexit peak. 1CPIH – The Consumer Prices Index, including owner occupiers’ housing costs (ONS)
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