The Government has published the second Finance Bill of 2017 which had its second reading in the House of Commons last week.
The proposals contain a raft of legislation which were excluded from the first Finance Bill which was shortened in view of the snap election.
From a private client perspective, the main proposals are as follows:
- reduction of the dividend allowance from £5,000 to £2,000 from April 2018;
- non-domicile status threshold reduced so that non-UK domiciles who have lived in the UK for more than 15 of the past 20 tax years will automatically be deemed UK-domiciled;
- scope of Inheritance Tax to be extended to cover residential properties situated in the UK where they are held through overseas structures by trustees or individuals domiciled outside the UK.
The Bill is expected to be enacted by Parliament before the Christmas recess.
Readers should consult their advisors on the proposals.
If you would like advice on the points raised in this article and ancillary matters then please contact Gabrielle Dell or Jagat Shah on 01932 852057.