Cap on inheritance tax paid by their offshore trusts will only help those worth more than £83m, say experts
A tax break for rich former non-doms that slashes their potential inheritance tax bills was included in the small print of the budget.
The benefit relates to how much tax this group faces having to pay on their global wealth held in trust.
When Rachel Reeves scrapped the non-dom status at last autumn’s budget, she brought their trusts under the same regime as ordinary taxpayers, who pay an inheritance tax (IHT) of 6% of the total value of a UK or offshore trust every 10 years from its creation date.
On Wednesday, the chancellor introduced a £5m cap on how much IHT can be levied every decade on non-dom offshore trusts created before the status was abolished. Experts said this would only help those worth more than £83m.
