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Treasury pulls back from easing non-dom tax bills

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Non-dom property owners face large tax bills regardless of whether their decide to keep or unwind their offshore tax planning.

The Treasury had hinted tax relief may be available for those who decide to remove UK properties from foreign company ownership structures.

The Government has sought to clamp down on individuals who use such structures to mitigate the tax they owe.

But the Financial Times reports the Treasury has now decided reducing the tax costs associated with restructuring UK property ownership would not be appropriate.

In a consultation paper, the Treasury says: “While the Government can see there might be a case for encouraging de-enveloping, it does not think it would be appropriate to provide any incentive to encourage individuals to exit from their enveloped structures at this time.”

Extra tax bills may be limited to capital gains tax since April 2013, but in some cases may be dated back to 2008. Stamp duty may also be imposed if the property has a mortgage attached.

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