Changes to Capital Gains Tax for non-domiciliaries create as many anomalies as they remove, says Judith Ingham
For the second time in as many years, an innocent sounding heading in an HM Revenue & Customs (HMRC) note conceals an upheaval in the world of trusts taxation. On the first occasion, it was “alignment” in the 2006 Budget Notes which heralded fundamental changes to the inheritance tax treatment of trusts contained in the Finance Act 2006. This time, it was the label “anomalies” in the 9 October 2007 Pre Budget Report (PBR) which was the signpost to a revolution in the Capital Gains Tax (CGT) treatment of trusts made by non-domiciliaries. And, this time, there is a further sting in the tail—the draft clauses issued on 18 January 2008 (which it is proposed should be included in the Finance Bill 2008) went a lot further than the PBR implied. And, following significant lobbying since 18 January, we now have a raft of clarifications (some published in an HMRC letter of 12
.tmb-mov69x69.jpg?sfvrsn=16d9dd3d_1)
