Billionaire art collector Roman Abramovich was probably hoping the proposed changes to taxation law affecting UK “non-doms” were an April Fool’s joke. Yet the rules, which are expected to hit prominent UK art collectors who reside abroad for tax purposes, are all too real. Originally due to come into effect on 6 April this year, the reforms have now been delayed because of the upcoming election, but remain in the pipeline.
Under the proposed laws, “non-doms” who have been resident in the UK for at least 15 of the past 20 years but have a permanent home abroad would be considered UK domiciled for tax purposes. The changes would mean that non-doms such as Abramovich could be liable to pay tax on any art they sell even if it is held outside the UK. Continue reading