United Kingdom: Finance Act 2017 enacted - impacts for globally mobile employees and employers

Jun 2017

Due to the unexpected announcement of a snap General Election (held on 8 June 2017), the number of provisions in the Finance Bill 2017 was drastically reduced. On April 27, 2017, only a relatively limited number of measures were enacted into law.

Certain draft provisions that impact globally mobile employees were notably omitted from the legislation. They include the introduction of a deemed domicile status for all tax purposes from April 6, 2017, together with the opportunity for many non-domiciled individuals to ‘tidy up’ their offshore bank accounts. While the broad expectation is that these measures will be re-introduced shortly (with the same commencement dates and in substantially the same form) once a new Government has been formed, this is not certain, as it will be a matter for that new Government to decide. In the meantime, these omissions extend what has already been a prolonged period of uncertainty for many globally mobile employees and their employers.

However, not all measures which impact globally mobile employees have been omitted; the Finance Act still includes, among other things, measures reforming the taxation of foreign pension schemes.

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James Clemence
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