Sean Christian, Managing Director, Canada Life International Limited (CLI) comments on Labour’s announcement on abolishing the non-dom status:

“Any changes to the domicile rules can certainly help make the tax system easier to understand, but we would need to see how this would work – the detail is always important.

“It appears that Labour want to link all taxes to residency, so that all residents of the UK pay taxes in the same way irrespective of domicile. If this principle applied to all taxes then the scope for UK inheritance tax could increase as the rules around deemed domicile would also be abolished. UK residents would then pay UK inheritance tax on their worldwide assets, irrespective of how long they have been in the UK – this would highlight more than ever the need for effective estate planning.’

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