Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what estimate his Department has made of the cost of protecting overseas trusts in the draft provisions on deemed domicile for tax purposes.
The cost of protecting income and gains that arise and remain within a non-resident trust which is set up by a non-domiciled individual who later becomes deemed-UK domiciled form part of the wider package costed as part of the non-dom reforms. The figures for the full package are set out in Table 2.2 of Spring Budget 2017 under two rows: “Non-domiciles: abolish permanent status” and “Non-domicile: IHT on UK residential property. They have been certified by the Office for Budget Responsibility.
Measure | 2017 to 2018 | 2018 to 2019 | 2019 to 2020 | 2020 to 2021 | 2021 to 2022 |
Non-dom: abolish permanent status | -£20m | £410m | £330m | £315m | £310m |
Non-dom: IHT on UK residential property | £25m | £80m | £50m | £55m | £65m |