Background
Over the past eighteen months, Parousia has advised a number of high-net-worth clients considering emigration from the UK, following the abolition of the non-domicile regime and the introduction of the new Long-Term Residence rules for Inheritance Tax.
The advice has involved detailed consideration of the UK Statutory Residence Test and the steps required to establish and maintain bona fide non-UK residence.
Our approach
Several of these assignments involved continuing connections to the UK: a spouse and family who remained here, a principal family home that was retained, and children who continued to receive their education in this country. Parousia considered the implications of those connections for both residence and wider tax planning, including Inheritance Tax and Capital Gains Tax exposure.
In appropriate cases, this included consideration of full-time employment overseas and the effect of UK ties and permitted days in the UK upon residence status.
The assignments also incorporated reviews of Wills, succession and estate planning, the ownership and future disposal of UK and overseas assets, and the longer-term implications of the new Inheritance Tax residence regime.
Outcome
Parousia assisted clients with the necessary HMRC filings and applications arising from their departure.
The relationship did not end at the border: Parousia has provided continuing advice to help ensure that each client’s residence position and estate planning remain appropriately structured following their departure from the UK.