In the latest episode of our policy in practice podcasts, David Gauke and Paul Hardwick discuss implications of the recent General Election for private clients, with a focus on proposed tax policies of the new Government.
They cover:
- the new Government's potential tax plans;
- the status of changes to non-dom taxation; and
- advisory strategies on dealing with potential tax outcomes.
If you would like more information or want to discuss any of the topics in this podcast, please get in touch with David and Paul.
Episode summary
In this latest policy in practice podcast episode, David Gauke, head of public policy at Macfarlanes, is joined by Paul Hardwick to discuss the tax implications following the recent General Election. They highlight Labour's manifesto commitments, with a particular focus on significant tax changes such as reforming the tax treatment of UK resident non-UK domiciliaries (non-doms). The podcast delves into the specifics of these proposed changes and their potential impacts on private clients.
Paul explains that the new Government's plans include a move from domicile to residence-based taxation, and to abolish the remittance basis from April 2025. Additionally, they propose ending protected settlement status and reforming inheritance tax to be based on residence instead of domicile. These changes are expected to bring about uncertainty for clients with existing trusts, who will need to adapt to the new tax environment. David and Paul also discuss the need for clients to be prepared for a swift transition once the policies are implemented.
David anticipates that detailed policy changes and draft legislation will be outlined in the upcoming budget announcement, expected in October or November 2024, following an initial review of public spending by Rachel Reeves. In the meantime, Paul advises clients to engage in scenario planning to be ready for various outcomes. The podcast underscores the importance of staying informed and working closely with advisors to navigate the forthcoming tax landscape efficiently.
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