Expats living in the UK are to lose “non-dom” tax benefits under the new rules. They will lose franking credit benefits on any Australian shares they own. A British tax change looks set to deprive Australian expats in the UK of the benefit of negative gearing on their properties back home, and could also keep them in Britain’s inheritance tax net for a full decade after going home.
The rules will also mean that long-term Australian residents of the UK will not get the benefit of franking credits on any Australian shares they own. And if they retire in Britain, they would pay tax on any superannuation income streams they bring across from Down Under. Rishi Sunak’s government announced the change to the so-called “non-dom” rules in the budget this month. “My view is that this may well be enough of a poison pill for many Australians and Kiwis to leave the UK – that is, to arrange their affairs so as not to be tax resident in the UK, or more probably return home,” said one London-residing Australian executive. The budget earlier this month, gazumping a plan by the opposition Labour Party to introduce the same reform if they win government later this year. The government is scrapping a system that allows people to declare themselves as “non-domiciled” in the UK for tax purposes. Those who do this then pay tax only on their UK-sourced income and gains, and not on any income earned or gains made elsewhere
UK Tax Australian Expats Non-Dom Negative Gearing Inheritance Tax
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