Are there any proposals in your jurisdiction for new legislation or regulation, or to revise existing legislation or regulation, in areas of law relevant to high-net worth individuals, particularly those coming to or investing in your jurisdiction? Are there any other current developments or trends relevant to such individuals that should be noted?
UK Immigration for EU Nationals from 1 January 2021
From 1 January 2021, nationals of countries in the EEA and Switzerland will require a visa to live, work or study in the UK for more than six months. Nationals of countries both inside and outside the EEA and Switzerland will therefore be subject to the same single UK immigration system from this date. The only exception to this are nationals of countries in the EEA and Switzerland who are eligible to make an application under the 'EU Settlement Scheme' by 30 June 2021 and are granted either 'pre-settled' or 'settled' status. Individuals with either status will continue to be able to have their EU free movement entitlements, including the right to live and work in the UK, protected after Brexit.
Hong Kong British National (Overseas) Visa from January 2021
On 22 July 2020, the UK government announced initial policy details on a new UK visa category for Hong Kong residents who are British National (Overseas) citizens, and their dependants. This new visa will launch in January 2021 and requires individuals to be able to accommodate and financially support themselves and their dependants in the UK for at least six months. No skills tests, minimum income or English language requirements will apply.
Proposals for conversion of opposite-sex marriage into a civil partnership
The Government Equalities Office published a public consultation in July 2019 inviting views on its plans, among other things, to introduce a time-limited right for opposite-sex couples to be able to convert their marriage to a civil partnership, and subsequently to bring all conversion rights (for same-sex and opposite-sex couples) to an end. The consultation ended on 20 August 2019 and, at the time of writing, a response is awaited from the government.
Possible future changes on inheritance tax and the Taxation of Trusts: recent consultations
OTS review of IHT
In 2019, the Office of Tax Simplification published two reports on the responses it received to its review in 2018 on potential simplification of the rules of inheritance tax (IHT). In both reports, the OTS made a number of suggestions for reform of the legislation. Proposals, if any, by the government to take forward the OTS suggestions are still awaited.
The Taxation of Trusts: a review
The government consulted between 7 November 2018 and 28 February 2019 on the principles that government believes should underpin the taxation of trusts: transparency, fairness and simplicity, requesting views on potential areas for reform. A government response to the feedback from the consultation is still awaited.
APPG report - reform of inheritance tax
The All-Party Parliamentary Group for Inheritance and Intergenerational Fairness (APPG) published a paper in January 2020 proposing a complete overhaul of the existing IHT rules. Among other suggestions for change, this included a proposal to replace the current IHT regime with a tax on lifetime and death transfers of wealth, with very few reliefs and a low flat rate of tax. The paper also proposed a tax rate of between 10 per cent and 20 per cent (potentially, on death, the higher rate might apply to estates over £2 million). While the APPG is essentially a discussion reform, this paper highlights a trend in discussions for reform or overhaul of the existing UK IHT system.
OTS Capital Gains Tax review
In July 2020, following a request from the Chancellor of the Exchequer to do so, the OTS published a call for evidence seeking views on capital gains tax. This consultation is requesting comments on complexities in the present system, and suggestions for improvements. The review will close on 9 November 2020.
BREXIT
The UK left the European Union (EU) on 31 January 2020. This was followed by an 11-month transition period in which all laws and regulations governing the relationship between the UK and the EU remain unchanged. The transition period ends on 1 January 2021, and with effect from that date the UK will no longer be governed by EU law except to the extent that it has expressly been written into UK law or that an agreement has been reached between the two jurisdictions that EU law may apply and to what extent. Negotiations are ongoing in this regard.
England & Wales Guide
The England & Wales guide answers the principal questions for Private Clients relating to the law in this jurisdiction.
