Joanna Newton, partner at Stowe Family Law, examines the financial and tax reality for high net worth divorcing couples considering a foreign escape before Labour’s rumoured tax hikes on the wealthy
The October Budget is already receiving considerable press, particularly as the Chancellor has expressed there will not be changes to income tax, National Insurance and VAT for ‘working people’. As a result, there has been strong speculation about the potential impact on inheritance tax, capital gains tax, and reduction of the pensions tax relief for high earners.
There are additionally potential changes to the UK’s non-dom tax status. In the past, this status has proved a useful tool for UK residents who want to escape paying tax in the UK.
As these rumours gather pace, wealthy individuals and families are looking to quickly move out of the UK to more tax friendly destinations, particularly as in the past, government Budgets have taken immediate effect.
