UPDATE: The industry is already reacting to the news in today's UK Spring Budget that chancellor Jeremy Hunt has decided to scrap the non-dom regime entirely.
Today's UK Spring Budget is expected to reveal changes to or even to scrap the non-dom regime entirely according to many speculative reports, particularly in the last week.
While the BBC argued it a "popular option" to boost government finances, business management consultancy Alvarez & Marsal warned the abolition would be a significant risk for Hunt with little lasting impact.
But James Quarmby, partner and head of private wealth at international law firm Stephenson Harwood, posted on LinkedIn some interesting 'gossip'.
He said: "I have it on very good authority that the U.K. will adopt the main parts of the Italian non dom regime, but with a shorter period (my guess is 10 years) and a higher fee (£100k to £150k). I’m also told that it likely we will see legislation in the Finance Bill 2024."
Quarmby added in a later post yesterday (5 March): "This evening’s report in the FT states that in respect of the reform of the non-dom rules “[the Chancellor] will also encourage wealthy people to bring their foreign held assets and money into the U.K.
"This can only mean that the remittance basis is out, to be replaced with an exemption basis (just like Italy).
"As further evidence of a turn towards Italy, the article then says he will “modernise the system, replacing the concept of domicile with a statutory residence test that would define who benefits from a new system of tax privileges “
"So, there you have it, but is it true ? My feeling is that it’s unlikely a briefing to journalists on the eve of the Budget would be mere gossip - it’s almost certainly going to happen."
