Foreign income and gains in trust structures, which are settlor-interested, will be automatically attributed to the settlor, exposing them to UK income tax/CGT, unless they are eligible for the FIG regime, are deceased, or are non-UK resident.
Are offshore trusts still efficient for UK income tax and capital gains tax? In this article we consider how the 2024 Spring Budget announcements are likely to impact offshore trusts settled by: What are the proposed changes from 6 April.
Whats Changing in 2025? Under current rules, non-doms can elect to be taxed on the remittance basis for up to 15 years, meaning they are only taxed on their UK income and gains and not on foreign income and gains (FIGs) unless remitted to the UK. Trusts have played a...
After four years in the UK, individuals who have set up trusts will be taxed on the trust income and capital gains, but the trusts will remain free of 40 per cent inheritance tax. After 10 years their entire global assets will be caught by the UK tax net.
After that, all foreign income and gains will be taxable at the corresponding marginal rate. The Treasury estimates the further reforms to the non-dom tax regime, announced in Reeves' 2024 Autumn Budget, will raise 12.7 billion over the next five financial years.
Trusts and Income Tax Different types of trust income have different rates of Income Tax. Each type of trust is taxed differently.Trustees are responsible for paying tax on income received by accumulation or discretionary trusts. The first 1,000 is taxed at the standard rate.
Thailand does not tax foreign income and capital gains unless a person brings them into Thailand. Offshore earnings, trusts, dividends, and gains remain outside the Thai tax net if they stay offshore. In other words, Thailand operates a modern-day equivalent of the UKs old non-dom system...
Income tax is painful, but the changes to Inheritance Tax (IHT) are where the real damage is done. Previously, non-doms only paid 40% IHT on their UK assets.
