Tag Archives: income tax legislation

Finance Bill 2017 tax changes: how can UK resident non-doms protect their offshore trusts?

To date, UK resident non-doms may not have been greatly impacted by the UK tax system’s plethora of measures to try to get the foreign income and gains received by offshore trusts (i.e. trusts that are not UK tax resident) taxed in the UK.  This is because one of the key anti-avoidance provisions, the ‘S.86 Settlor Charge’ which can make a trust’s settlor liable for the offshore trust’s gains, only applies to settlors who are both resident and domiciled in the UK.Its sister charge, the ‘S.87 Beneficiary Charge’, can apply to match trust gains with distributions and benefits (‘capital payments’) to the trust’s beneficiaries.  This will not trouble a UK resident non-dom beneficiary either, provided the capital payments are made or enjoyed outside the UK, and kept there, and the resident non-dom claims the remittance basis of taxation.  

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