Significant UK Tax Changes- 2024 Budget

The upcoming 2024 UK Budget is likely to see significant tax changes, especially for non- domiciled individuals in the UK. This will particularly impact Australians living in the UK.

Non-Doms living in the UK

Stricter non-domicile tax laws could significantly impact those benefiting from non-dom status, leading to higher taxes—especially in relation to foreign income and gains. It is likely that such foreign income and gains will be subject to UK taxation, although new arrivals to the UK from Australia will likely benefit from a 4-year period where foreign income and gains may be remitted into the UK without tax.

Therefore, for those non-doms currently in the UK, it is important to seek advice now on how to best plan for the new changes.

Another potential Budget changes.

In addition to the non-dom changes, the UK Budget 2024 may also impact of the following areas:

  • Capital Gains Tax (CGT): Proposed changes could align CGT rates with income tax brackets, potentially increasing financial obligations for higher earners and prompting a review of investment strategies. There may also be a discount reflected for the time the asset has been held similar to the General CGT discount in Australia.
  • Departure Exit Tax: The proposed exit tax may impose CGT on individuals leaving the UK, complicating financial planning for expatriates.
  • Inheritance Tax (IHT): Potential changes to the current 40% IHT on estates over £325,000.
  • Pension Tax Relief: A proposed flat rate for pension tax relief could reduce benefits for higher earners, encouraging them to explore alternative savings and investment options.

Given these potential upcoming changes, it is important to reassess your tax planning strategies, particularly as a non-dom residing in the UK or someone considering moving to the UK.

Comprehensive information will be available after the announcements on October 30, but proactive planning now could make all the difference.

If you have any questions or want to discuss how these changes might affect your specific circumstances, please don’t hesitate to reach out to one of our partners.

Email us at: info@ukautax.com

We’re here to help you navigate these changes and plan effectively for the future.