The Prime Minister Rishi Sunak has announced that the general election will be held on 4 July 2024. As a result, ongoing live consultative work with stakeholders will be paused during the pre-election period. 2024 is another interesting year for tax advisers and it's highly probable that any winner of the election will hold an Autumn budget.
While many accountants and tax advisers are looking backwards at this time of year, assisting their clients with historical accounts and in the preparation of 2023-24 Self Assessment Returns, there are two measures that most practices will want to monitor.
Non-Dom taxation
HMRC have only just brought out a more detailed policy document covering the government's Spring Budget 2024 proposals for the reform to the taxation of Non-domiciled Individuals and changes to the Remittance Basis of taxation. It had also scheduled several weeks of consultative meetings with stakeholders These will now all be paused or potentially cancelled if there is a change in government.
The proposed changes affect the taxation of Foreign Income and Capital Gains ('FIG'), they also stand to affect employees who claim Overseas Work Day relief, the charge to Inheritance Tax for those with offshore assets and the taxation of offshore trusts.
The measures as proposed, contain some extremely generous transitional reliefs such as a limited window to remit mixed funds, something that Non-Domiciled individuals (and their advisers) will be most keen to plan for.
See Subscriber briefing: Non-Domiciled Individuals and Remittance Basis: Spring Budget 2024 proposals briefing
Furnished Holiday Letting
Advisers have been surprised to find so little news coming out from HMRC on one of the other big measures announced at Spring Budget 202, the abolition of the Furnished Holiday Letting (FHL) regime, which is scheduled also for 5 April 2025.
There is some speculation surrounding the proposed details of this measure. It is now safely assumed that more details will be available in the Autumn.
Useful guides on these topics
Finance Act 2024 Tax Update and Rolling Planner
UPDATED: Keep up with what's hot or not in direct and indirect taxation for different types of taxpayers and business owners.
Non-Domiciled Individuals and Remittance Basis: Spring Budget 2024 proposals briefing
It was proposed in Spring Budget 2024 that the non-domicile tax regime and current version of the Remittance Basis will be abolished on 5 April 2025 and replaced with a new regime.
Furnished Holiday Letting (FHL)
What is Furnished Holiday Letting? How do you qualify for Furnished Holiday Letting? What are the rules for Furnished Holiday Letting?
