Andrew Carey, relationship manager at Locate Guernsey, an organisation that facilitates the relocation of individuals and businesses to Guernsey, comments on the latest changes for non-UK domiciliaries…
The importance of today should not be understated – from now on thousands of HNWIs will be liable to pay significantly more to HMRC. This essentially marks the undoing of the non-dom status, a regime which has served the UK well for over a century.
Given that the Chancellor did not provide reassurances to the HNWI community in his Autumn Statement and Spring Budget, perhaps this should not come as a huge surprise. Nonetheless, HNWIs might have hoped for at least a softening of the government’s position and will now be left hugely disappointed.
What happens next will depend on individual circumstances – some will not be aware of the extent to which these changes will impact them and others will wait to see how things turn out before deciding on their future. What is certain however, is that many are already enquiring about relocating to alternative jurisdictions.
With Brexit also adding great uncertainty, relocating to stable jurisdictions with more accommodating tax regimes is proving an attractive option for many.
It is therefore no surprise that Guernsey is appealing to many HNWIs. Coupled with an excellent quality of life, the Crown Dependency is well placed to take care of its residents post-Brexit and has the tax environment capable of providing HNWIs with the financial stability they require.