Paul Solon and Victoria Thompson consider how proposed changes to capital gains tax will affect non resident trusts
The government has been promising a review of the residence and domicile regime for many years, and practitioners have grown accustomed to waiting in vain for the publication of concrete proposals. However, in his Pre Budget Report (PBR) last October, the chancellor announced that the wait was over and that legislation would be introduced in the Finance Bill 2008 (see key points box below).
The chancellor promised that consultation on the detail of the changes—and on further changes for longer term residents— would be published towards the end of 2007 and, on 16 December, the consultation document Paying a Fairer Share: a Consultation on Residence and Domicile was published. This gave some more details about the proposals but it was not until the draft legislation was published last month that the full picture has emerged.
If the draft legislation is implemented in its current form, the changes it will introduce will
