From 6th April 2017 individuals who are currently non-UK domiciled and who have been resident for least 15 out of the past 20 years will become deemed-domiciled for income tax and capital gains tax.

Generally, if clients becoming UK deemed-dom do not wish to pay UK tax on offshore assets, they will need to re-organise their affairs. See ‘Bourse Info Sheet – Advantages for Deemed-Doms of maintaining assets in an offshore structure’ for further consideration. Bourse has designed a solution which you might find helpful in advising your clients – further details and information is also provided.

Please note that the proposed legislation is still draft and therefore subject to change.

Bourse Non-Dom Solution
A more detailed explanation of the Bourse Non-Dom Solution can be accessed here.  Alongside this overview, forms, guidance notes and several decision analysis documents have been prepared to assist you and your clients with navigating the Bourse Non-Dom Solution and what is required to protect the client’s interests.

Bourse Products – other options
The Bourse Non-Dom Solution primarily revolves around the putting of offshore assets into a trust established initially on an executory basis as well as a sophisticated analysis of which Bourse products may be appropriate for a client who is becoming UK deemed-dom. However, the Bourse Group is aware that clients may wish to settle a ‘normal’ discretionary trust or simply to acquire a bond or an annuity and application forms to apply for any of these products can be found here. Completed forms should be sent to Bourse using the below contact details.

If there is uncertainty as to whether legal title to an asset can be transferred to, and accepted by, the trustees before 6th April 2017, then the only way to ensure that assets are alienated for UK tax purposes by the individual is by legal assignment of his equitable interest in the asset. Any error might make the settlement ineffective. Analysis on this point is provided here.

Additional guidance
Bourse has prepared a list of the documentation which comprises the Bourse Non-Dom Solution which can be accessed here.

About the Bourse Group
For further information about the Bourse Group please see ‘Bourse Info Sheet – Bourse Group Licensing Overview’.

For further information relating to the Bourse Non-Dom Solution please speak to your usual Bourse contact or email non-domsolution@bourse.gg. Alternatively, documentation can be sent to Bourse Non-Dom Solution Team, Havelet House, South Esplanade, St Peter Port, Guernsey GY1 3JS.