Is the UK still a tax haven?

[SoNewToAllShit]

A few years ago, I read several posts here on OCT about the possibility of moving to the UK (as a non-UK citizen), having a company abroad, and not conducting business in the UK, allowing you to benefit from seven years of tax-free status if you became a UK resident.

Does anyone know if this rule has since been abolished or if it still exists?

Looking at the replies in those old threads, it seems like no one really had a clear answer or solid knowledge about it.

So, I’m trying again to see if this might be an overlooked tax loophole for those who have the right setup.

 

[manukahoney]

Short answer - no, they abolished the non-dom status.

Slightly longer answer - they did introduce some 5-year substitute, but imho it's not worth it anymore. Ireland, Cyprus, Malta have 17 years non-dom regimes and Cyprus has the lowest requirements for the personal tax residence, I would recommend looking into it.

 

[EliasIT]

What if you only need 3 years and than anyway go back to where you came from, UK still not good ?

 

[alain]

Based on my research, they have abolished the 7-year rule and introduced a 4+1 rule instead.

This means that all foreign income and gains are tax free.

Regarding the question asked here, this would apply, you can live in the UK for 4 years as a new arrival without paying taxes.

 

[manukahoney]

What if you only need 3 years and than anyway go back to where you came from, UK still not good ?

Yes, that will do. I in fact know Italians who decided to go to the UK for a few years before moving to UAE because Italy has some bizarre exit tax if you move to what they consider a "tax heaven".

Another case - you can relocate to UK, get a tax residency (rules are simple and very transparent), liquidate your non-UK portfolio, pay 0 tax, then move elsewhere with a bulletproof paperwork, tax reports etc.

 

[Martin Everson]

I would hold of making any decision until UK Governments March 26 2025 budget announcement.

https://international-adviser.com/rachel-reeves-must-clear-up-uncertainty-in-uk-spring-statement/

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Unsurprisingly there has been a huge amount of negative press following the budget and the Government announced in January that they were considering rowing back on the non-dom changes. Again, we don’t know what that means.

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[no1d]

Another case - you can relocate to UK, get a tax residency (rules are simple and very transparent), liquidate your non-UK portfolio, pay 0 tax, then move elsewhere with a bulletproof paperwork, tax reports etc.

Does UK tax office ask about the money if you are a non-dom person?

 

[EliasIT]

Say you took out 2000 CHF (sometimes more) each month in cash from the ATM from taxed money you receive each money as salary in CH.

Now you are sitting with 50K CHF in cash, is the bank statement sufficient from the CH bank to take this money with you in the Airport?

 

[manukahoney]

Does UK tax office ask about the money if you are a non-dom person?

I don't know how it works now, but as a non-dom you just ticked the box "remittance basis" and that is all, no need to declare any assets or income received overseas. It does require some footwork on the banking side, like keeping your "clean capital" and income from it separated from the rest and I assume banks might actually send some info to HMRC even if not prompted to. But as long as it was a passive income (dividends, royalties, asset sale, rent etc) it was covered under remittance basis and not tax was due.

 

[cuno]

Based on my research, they have abolished the 7-year rule and introduced a 4+1 rule instead.

This means that all foreign income and gains are tax free.

Regarding the question asked here, this would apply, you can live in the UK for 4 years as a new arrival without paying taxes.

That could work out well for me.

 

[Martin Everson]

Say you took out 2000 CHF (sometimes more) each month in cash from the ATM from taxed money you receive each money as salary in CH.

Now you are sitting with 50K CHF in cash, is the bank statement sufficient from the CH bank to take this money with you in the Airport?

Yes

 

[JustAnotherNomad]

What if you only need 3 years and than anyway go back to where you came from, UK still not good ?

I thought you were happy in Switzerland?

 

[EliasIT]

I thought you were happy in Switzerland?

Without going off-topic here, there could be other reasons for looking for new opportunities.