A&M Tax: March Edition Of UK Asset Managers Briefing Note

• Published date: 27 March 2024
• Law Firm: Alvarez & Marsal
• Author: Rhys Owen, Orion Ganase, Joe Macklin-Gray, Shirley Ly and Lucy Hardman

UK's 2024 Spring Budget

On 6 March 2024, Chancellor Jeremy Hunt delivered the UK's Spring Budget. Below, you will find a summary of the key highlights for asset managers. If you would like further help addressing specific background facts and circumstances, please feel free to reach out.

Updates on National Insurance Contributions (NICs)

• Class 1 NICs main rate will decrease from 10 percent to 8 percent starting April 6, 2024.
• Class 4 NICs, which are paid by self-employed individuals, will also decrease from 8 percent to 6 percent starting April 6, 2024 This reduction of 2 percent is in addition to the 1 percent decrease announced in the Autumn Budget.
• Class 2 NICS may be abolished, with further discussions to take place.
• No changes were announced to employer NICs, the NICs thresholds or the rates for earnings above the upper threshold.

Upcoming changes to non-domicile tax regime

• The remittance basis of taxation for non-domiciled individuals residing in the UK will be abolished from April 6, 2025, and replaced with a new regime.
• New arrivals, who have a period of 10 years consecutive non-residence, will enjoy full tax relief on Foreign Income and Gains (FIG) for a four-year period of subsequent UK tax residence This means they can bring money to the UK during this period without facing additional taxes. Consideration should be given to any carried interest gains, which are not explicitly mentioned.
• Existing tax residents with fewer than four years of UK tax residence can also benefit from this relief...