Non-doms to claw back capital gains tax

Residents of the UK who are not domiciled here are being encouraged to review their offshore trusts before the month’s end to save on capital gains tax.

Changes to current rules have created a loophole for “non-doms” that, in the best case, permits them to shrink the total capital gains tax bill slapped on by the Revenue for any gains earned on funds held offshore.

To qualify, trustees must have set up an offshore trust before April 6 of 2008. Any gains from assets sold prior to this date are exempt from capital gains tax, according to the government.

This so-called “re-basing” election must be made by the 31st of January and the form which must be filed is listed on the Revenue’s website.

Chris Mills of Grant Thornton’s private client group, said: “All non-resident settlements with one or more current or potential non-UK domiciled beneficiaries should seek advice on the availability of the election and the consequences of making an election.”