NORTH WEST RESIDENTS PROFIT FROM NON-DOMICILED TAX STATUS

An increasing number of north-west individuals are taking advantage of their non-domiciled status to reduce their tax bills, according to some leading firms of lawyers and accountants, in Manchester.

However, at a round table discussion that was hosted by private bank Coutts & Co and conducted by publishers Tru-Est, north-west law and accountancy firms warned that many other local residents are missing out on opportunities to save on income, capital gains and inheritance tax (IHT) bills. This is because they may not realise they can take advantage of their non-domiciled tax status.

Private client firms said many of the non-domiciled residents they see are second generation Asians who are looking to sell their family businesses.

Nigel Cooke, senior manager, Coutts Manchester said: "Non-domiciled individuals may not see the tax benefits of their planning for up to 10 years or longer. But the opportunity to reduce their income tax, CGT and IHT bills should not be missed.

"Nevertheless, for some individuals whether they are non-domiciled is not always clear cut and HM Revenue and Customs may not give a definitive view. It is vital, therefore, that individuals seek professional tax advice."

Charlie Macfarlane of Tru-Est said: "One of the strong themes that came out of the discussion among eight leading private client firms in Manchester was the increasing number of local people who should be using their non-domiciled status as part of their tax planning. People should not just think of their own status but also that of their husbands or wives."

An individual is born with a domicile of origin, which is normally the same as their father’s at the time of their birth. If they retain strong ties with the country of their father’s domicile, they will normally keep the same domicile through life.

For example, a 40-year-old individual who was born in India and moved to the UK when he was 10 could be non-domiciled. His case is strengthened if he retains strong ties with his family in India and owns property in the country as it shows his intention to return there in the future.

The main advantage of being non-domiciled is that individuals do not have to pay tax in the UK on non-UK sourced income and capital gains as long as this money is not brought into the UK. As long as the individual has not lived in the UK for 17 of the past 20 tax years, their non-UK assets will not be subject to IHT on their death.

- Ends -

For further information please contact:

Claire Symonds

Regional PR Manager, Coutts 020-7957 2650

James Anderson

Chairman, Tru-est 020-7674 0401

Notes to editors

About Tru-Est

Tru-Est Ltd is the leading independent authority on the private wealth management sector. Established in 1993, the company now provides comprehensive data and analysis on the wealth management market and its major players.

The annual PAM Awards (3rd March 2005) are judged by a panel of leading independent industry experts, based on rigorous quantitative and qualitative data gathered on the leading private asset managers. They are viewed as the industry’s most sought after and prestigious awards.

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Tru-Est also produces a daily industry news service at www.thewealthnet.com, as well as several other market-leading wealth management information products. These include Wealth Management, Trust & Estate Practitioner and Wealth Technology.

About Coutts

  • Coutts is the international private banking arm of The Royal Bank of Scotland Group. The Royal Bank of Scotland Group is one of the world's largest banking groups.

  • Coutts manages the wealth of 90,000 high net worth clients worldwide through a network of 40 offices globally.

  • The first Coutts regional office to be opened was Eton in 1961. The most recent new opening was Liverpool at the end of 2003. Today, Coutts has regional offices in Bath, Birmingham, Bournemouth, Bristol, Cambridge, Cardiff, Eton, Guildford, Leeds, Liverpool, Manchester, Newcastle, Nottingham, Oxford, Tunbridge Wells & Winchester.

  • Coutts offers clients a range of products and services covering sophisticated investment products together with expertise in trust and fiduciary services and UK tax and banking services.

  • Coutts has for three years running been awarded ‘Best Use of Long-Only Multi-Manager Structures’ at the Private Asset Management Awards

  • Coutts & Co is authorised and regulated by the Financial Services Authority. Registered in England No. 36695. Registered office: 440 Strand, London, WC2R 0QS
  • Calls may be recorded