Q and A Tax, with Campbell Edgar, consultant director of Anderson Charnley

‘Well, that was a bolt from the blue!’ I exclaimed.

‘What was?’ asked Jim.

‘The changes announced in the pre Budget report,’ I replied. ‘I thought that some of them were a surprise, although the non-domicile UK resident provisions were not entirely unexpected.’

‘What was that?’ asked Jim, always keen to get the angle on any tax matter, particularly if it affects him.

‘Oh, it’s the £30,000 “additional tax charge” that non-doms will be required to pay for the privilege of living in UK and not paying tax on investment income that arises abroad and not remitted.’

‘That doesn’t affect me,’ said Jim, ‘I’m English, born and bred.’

‘But isn’t Suzie affected?’ I asked. ‘Was she not born and brought up in Holland?”

‘No, I’ve checked it – Suzie and I were married before 1 January 1974, so she adopted my domicile on marriage,’ said Jim. ‘I must say, the rules are complicated. Were there any other nuggets in the report which affect me?'

‘Yes, almost certainly the 18% capital gains tax on all disposals and the scrapping of indexation allowance and its successor, taper relief, and perhaps the transferable nil rate band for inheritance tax purposes.’

‘Well,’ replied Jim, ‘the gains tax change is great for me on personal assets, but I have got business mates who are incandescent with rage at the loss of business taper relief. They are fuming!