Is the UK still a tax haven?

[SoNewToAllShit]

A few years ago, I read several posts here on OCT about the possibility of moving to the UK (as a non-UK citizen), having a company abroad, and not conducting business in the UK, allowing you to benefit from seven years of tax-free status if you became a UK resident.

Does anyone know if this rule has since been abolished or if it still exists?

Looking at the replies in those old threads, it seems like no one really had a clear answer or solid knowledge about it.

So, I'm trying again to see if this might be an overlooked tax loophole for those who have the right setup.

 

[manukahoney]

Short answer - no, they abolished the non-dom status.

Slightly longer answer - they did introduce some 5-year substitute, but imho it's not worth it anymore. Ireland, Cyprus, Malta have 17 years non-dom regimes and Cyprus has the lowest requirements for the personal tax residence, I would recommend looking into it.

 

[EliasIT]

What if you only need 3 years and than anyway go back to where you came from, UK still not good ?

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If money is your hope for independence you will never have it. The only real security that a man will have in this world is a reserve of knowledge, experience, and ability!
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[alain]

Based on my research, they have abolished the 7-year rule and introduced a 4+1 rule instead.

This means that all foreign income and gains are tax free.

Regarding the question asked here, this would apply, you can live in the UK for 4 years as a new arrival without paying taxes.

 

[manukahoney]

EliasIT said:
What if you only need 3 years and than anyway go back to where you came from, UK still not good ?
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Yes, that will do. I in fact know Italians who decided to go to the UK for a few years before moving to UAE because Italy has some bizarre exit tax if you move to what they consider a "tax heaven".

Another case - you can relocate to UK, get a tax residency (rules are simple and very transparent), liquidate your non-UK portfolio, pay 0 tax, then move elsewhere with a bulletproof paperwork, tax reports etc.

 

[Martin Everson]

I would hold of making any decision until UK Governments March 26 2025 budget announcement.

https://international-adviser.com/rachel-reeves-must-clear-up-uncertainty-in-uk-spring-statement/

------ quote start

Unsurprisingly there has been a huge amount of negative press following the budget and the Government announced in January that they were considering rowing back on the non-dom changes. Again, we don't know what that means.

----- quote end

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[no1d]

manukahoney said:
Another case - you can relocate to UK, get a tax residency (rules are simple and very transparent), liquidate your non-UK portfolio, pay 0 tax, then move elsewhere with a bulletproof paperwork, tax reports etc.
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Does UK tax office ask about the money if you are a non-dom person?

 

[EliasIT]

Say you took out 2000 CHF (sometimes more) each month in cash from the ATM from taxed money you receive each money as salary in CH.

Now you are sitting with 50K CHF in cash, is the bank statement sufficient from the CH bank to take this money with you in the Airport?

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If money is your hope for independence you will never have it. The only real security that a man will have in this world is a reserve of knowledge, experience, and ability!
My personal favorite thread posted in the Mentor Group. Group of investment companies to avoid licensing.

 

[manukahoney]

no1d said:
Does UK tax office ask about the money if you are a non-dom person?
Click to expand...

I don't know how it works now, but as a non-dom you just ticked the box "remittance basis" and that is all, no need to declare any assets or income received overseas. It does require some footwork on the banking side, like keeping your "clean capital" and income from it separated from the rest and I assume banks might actually send some info to HMRC even if not prompted to. But as long as it was a passive income (dividends, royalties, asset sale, rent etc) it was covered under remittance basis and not tax was due.

 

[cuno]

alain said:
Based on my research, they have abolished the 7-year rule and introduced a 4+1 rule instead.

This means that all foreign income and gains are tax free.

Regarding the question asked here, this would apply, you can live in the UK for 4 years as a new arrival without paying taxes.
Click to expand...

That could work out well for me.

 

[Martin Everson]

EliasIT said:
Say you took out 2000 CHF (sometimes more) each month in cash from the ATM from taxed money you receive each money as salary in CH.

Now you are sitting with 50K CHF in cash, is the bank statement sufficient from the CH bank to take this money with you in the Airport?
Click to expand...

Yes

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[JustAnotherNomad]

EliasIT said:
What if you only need 3 years and than anyway go back to where you came from, UK still not good ?
Click to expand...

I thought you were happy in Switzerland?

 

[EliasIT]

JustAnotherNomad said:
I thought you were happy in Switzerland?
Click to expand...

Without going off-topic here, there could be other reasons for looking for new opportunities.

Toggle signature
If money is your hope for independence you will never have it. The only real security that a man will have in this world is a reserve of knowledge, experience, and ability!
My personal favorite thread posted in the Mentor Group. Group of investment companies to avoid licensing.

 

[Houdini]

Martin Everson said:
I would hold of making any decision until UK Governments March 26 2025 budget announcement.

https://international-adviser.com/rachel-reeves-must-clear-up-uncertainty-in-uk-spring-statement/

------ quote start

Unsurprisingly there has been a huge amount of negative press following the budget and the Government announced in January that they were considering rowing back on the non-dom changes. Again, we don't know what that means.

----- quote end
Click to expand...

I will wait and see what happens, I was not aware of such rules in the UK. They suffer with the economy there but if you have money you could care less for 5 years tax freedom.

 

[EliasIT]

yeah, there is no reason to make any move before clarification.

Toggle signature
If money is your hope for independence you will never have it. The only real security that a man will have in this world is a reserve of knowledge, experience, and ability!
My personal favorite thread posted in the Mentor Group. Group of investment companies to avoid licensing.

 

[Martin Everson]

Rachel Reeves softened non-dom plans after Blackstone CEO ”˜raised concerns'​

https://www.opendemocracy.net/en/da...ackstone-stephen-schwarzman-lobbying-meeting/

Yes there is a possibility things may get watered down and become attractive again.

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[no1d]

alain said:
This means that all foreign income and gains are tax free.
Click to expand...

Can you transfer foreign gains tax free to UK bank account as non-domiciled individual?

 

[bdt]

I believe so, at least with passive income, but be ready with supporting paperwork if it's a large payment in case they stop it and run AML!

 

[aragon]

manukahoney said:
Ireland, Cyprus, Malta have 17 years non-dom regimes
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Do you have any references to this 17 year non-dom regime as it pertains to Malta? I've never heard of such a time limit to Malta's non-dom regime.

 

[manukahoney]

aragon said:
Do you have any references to this 17 year non-dom regime as it pertains to Malta? I've never heard of such a time limit to Malta's non-dom regime.
Click to expand...

My bad, Cyprus and Ireland have limits, Malta doesn't if I'm not mistaken.