As was widely predicted, the UK’s Chancellor of the Exchequer, Alistair Darling, confirmed in today’s Budget that the controversial changes to the UK’s tax treatment of foreign domiciled but UK resident individuals would go ahead with effect from 6th April 2008. Despite representations to postpone the regime by a year, the Government are now fully committed to implementing the proposals in this year’s Finance Act. As previously announced, the new rules will apply to individuals who have been resident in the UK for at least 7 out of the previous 10 years.
Please find attached an alert memorandum summarizing these proposals.