Labour's election victory brings with it a clear direction of travel for UK tax policy. We set out the principal areas of anticipated change and where early action may be worth considering.

Capital Gains Tax

Rates could rise significantly — potentially to 40–45% for higher earners. Those sitting on substantial gains may wish to consider crystallising them at current rates before any increase takes effect. Equally, those planning asset disposals should keep a close eye on the timing of any Budget announcements.

Non-Dom Changes

The replacement of domicile with a residence-based test will affect how long-term UK residents are taxed on their worldwide assets. The IHT implications in particular — a worldwide estate charge after 10 years of UK residence — represent a significant shift for many clients.

Offshore Trusts

Protections for offshore trust structures are expected to be withdrawn, potentially triggering tax on foreign income and gains for UK-resident settlors once they become long-term UK residents.

Stamp Duty

An additional surcharge on property purchases by non-UK residents is planned. Those considering UK property acquisitions may wish to act before any increase is confirmed.

As always, actions taken in anticipation of rule changes should be considered carefully — avoid steps that cannot easily be undone. If you would like to discuss your position, please contact us.