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The Conservative win means non-domiciles living in the UK could now be targeted

08/05/2015

The Conservative win could signal a change in the way non-domiciles living in the UK are treated from a tax perspective. Plans to abolish hereditary domicile status could lead to more global assets becoming liable to UK inheritance tax (IHT) upon death.

Currently the UK deemed domicile rule is based on the number of years someone is in the UK. If someone is in the UK for 17 out of the last 20 tax years then they will become deemed UK domiciled for IHT purposes, and all worldwide assets will be subject to UK IHT on their death. This calculation could now be subject to change resulting in more people being UK domiciled for IHT purposes.

Portrait of Rachael GriffinRachael Griffin, financial planning expert, Old Mutual Wealth; “The number of wealthy individuals who spend a considerable amount of time in this country is increasing. These individuals may be unaware of the deemed domicile rules. The anticipation around the potential changes may create concern and uncertainty. Non domiciles living in the UK should have the ability to plan their finances in the same way as those who are domiciled in the UK do, so trust planning and the use of offshore bonds as legitimate ways of tax planning could help non-domiciles start to plan ahead of future changes in policy.”

For more information contact

Michael GlenisterOld Mutual Wealth020 7778 963807469 144535michael.glenister@omwealth.com

Notes to Editors:

Old Mutual Wealth is a leading wealth management business in the UK and internationally, helping to create prosperity for the generations of today and tomorrow.

Old Mutual Wealth oversees £131.3 billion in customer investments (as at 30 September 2017).

It has an adviser and customer offering spanning: Financial advice; investment platforms; multi-asset and single strategy investment solutions; and discretionary fund management.

The business is comprised of two segments: Wealth Platforms and Advice and Wealth Management.

Wealth Platforms includes the Old Mutual Wealth UK Platform; Old Mutual International, including AAM Advisory in Singapore; and the Old Mutual Wealth Heritage life assurance business.

Advice and Wealth Management encompasses the financial planning network, Intrinsic; Old Mutual Wealth Private Client Advisers; discretionary fund management business, Quilter Cheviot; and Old Mutual Wealth’s multi-asset investment solutions business.

Old Mutual Global Investors (‘OMGI’) is the asset management business of Old Mutual Wealth with £39.8bn funds under management (as at 30 September 2017). On the 19th December 2017, Old Mutual Wealth announced that it has agreed to sell its Single Strategy asset management business to the Single Strategy Management team and funds managed by TA Associates. The proposed transaction is subject to customary closing conditions, including regulatory approvals. 

Following managed separation from Old Mutual plc, Old Mutual Wealth will rebrand to Quilter plc. Each of the businesses within the Quilter Plc group will be rebranded over a two-year period, with the exception of Quilter Cheviot, which will retain its existing name.

Old Mutual Wealth is part of Old Mutual plc, a FTSE 100 group that provides life assurance, asset management, banking and general insurance. Old Mutual is trusted by more than 19.4 million (as at 31 December 2016) customers across the world and has a total of £212.3 billion of assets under management (as at 30 June 2017).

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