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08/05

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

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

It has an adviser and customer offering spanning:

  • Financial advice delivered by the Intrinsic network in the UK and AAM Advisory in Singapore
  • Platform based wealth management and protection products delivered by Old Mutual Wealth in the UK and Old Mutual International globally
  • Asset management solutions delivered by Old Mutual Global Investors
  • Discretionary investment management delivered by Quilter Cheviot.

Old Mutual Wealth oversees £123.5 billion in customer investments (as at 31 December 2016).

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 customers across the world and has a total of £394.9 billion assets under management (as at 31 December 2016).

This press release is for journalists only and should not be relied upon by financial advisers or customers.

Please remember that past performance is not a guide to future performance. The value of investments and the income from them can go down as well as up and investors may not get back any of the amount originally invested. Exchange rate changes may cause the value of overseas investments to rise or fall.

This communication is issued by Old Mutual Wealth Management Limited, a Private Limited Company (Company Number 0604270), Old Mutual House Portland Terrace Southampton Hampshire SO14 7EJ.