Private Clients - 14 Jul 2017
The announcement of the snap election back in April resulted in many of the clauses of the Finance Bill 2017 being withdrawn, due to the limited time before Parliament was dissolved in early May. The clauses relating to the ‘deemed dom’ regime, amongst others, were part of this withdrawal, which created a level of uncertainty as to what form and when these new rules may become effective, if at all.
The general expectation at the time was that this may simply be a delay in the formalities whilst we awaited the conclusion of the election on 8 June. However, the somewhat surprising election result has led to 5 weeks of further uncertainty. This has been a frustrating time for clients and advisors alike.
The Government confirmed on Thursday 13 July that they will legislate for the previously announced policies as part of the Finance Bill 2017 and that this will take effect from 5 April 2017, as intended. They believe sufficient warning was given of the changes due to take effect.
Progressing towards some certainty will be welcome news, particularly for clients who had taken positive action in terms of their planning for them. However, it should be noted that until the Finance Bill has been given Royal Assent (likely in the autumn) it is still subject to change.
We continue to recommend our clients contact their usual advisor prior to undertaking any new plans that may rely on the changes becoming effective at this time and in the form previously announced, as they will be able to provide an update of the current position.
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