Chancellor Jeremy Hunt’s decision yesterday to abolish the long-established ‘non dom’ tax regime is not a surprise – but may have hidden costs for the Treasury.

The value to Government coffers of individuals claiming this tax position has long been debated and if changes had not been made under the current Government, then it is highly likely they would have been under the next.

Hunt’s new tax regime will come into effect in April next year, which in the simplest terms would apparently allow non-domiciled individuals to remain living in the UK for the ‘first 4 years’, only after which time would they then be taxed as ordinarily resident.

The definition of precisely what constitutes the ‘first 4 years’ and ‘transition arrangements’, applicable to current non-doms also referred to, are at this time yet to be confirmed. The Finance Bill will make for very interesting reading.

Love

For individuals impacted by this change in ruling there will doubtless be a revision to financial management structures including for some business relocation, but the value of living in a city you love will ultimately be personal, as will the decision to remain.

London is a unique global city, with a wealth of experiences, opportunities and excellent schools that combine to offer an exceptional lifestyle.

Something that many will I am sure be happy to meet the revised cost of accessing and benefitting from.

While the announced changes may potentially increase direct Treasury income, there may also be a hidden cost, as spending on services and goods by those electing to spend less time in the UK reduces.”

Jeremy Gee is MD of Beauchamp Estates