HMRC not to remove Non-Dom Tax Concession Retrospectively
HMRC had previously planned to retrospectively crack down on loans secured using overseas income or capital gains to purchase UK property. However following a reversal on this many wealthy property owners will be greatly relieved.
In August 2014 the HMRC withdrew its concession for foreign income and gains to be used as security for loans in the UK without constituting a taxable remittance by UK resident non-UK domiciled individuals, this had included, but no longer applies to loans prior to August 2014.
The decision to make this removal of the concession retrospective let to substantial re-financing costs and considerable tax liabilities for numerous investors with fears that many would be forced to sell. In light of this HMRC were forced to accept the somewhat dire consequences of this decision and back down regarding its retrospective nature.
If you have an existing loan or are considering taking a new loan out in the UK and are not sure of the rules concerning taxation of overseas income and capital gains please feel free to contact us and discuss on an individual assessment basis.
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