Bryan Cave has made the shortlist for the prestigious Magic Circle Awards for 2016 under the category of “International Law Firm of the Year – USA”.
The Magic Circle Awards are held annually each Spring to recognize the best advisors in the financial sector on a global scale.
Dyke advises individuals, families and financial institutions on international estate planning and U.S. tax matters, with a particular emphasis in planning for clients who are exposed to both the U.S. and U.K. tax systems.
Last month, the UK government announced sweeping changes to the taxation of “resident non doms,” a classification of individuals who receive favorable tax treatment from the UK government.
The UK tax obligations of an individual depend in large part on the individual’s “domicile” under generally applicable English common law principles. (Unlike the US tax system, the citizenship of an individual is irrelevant under the UK tax system.) The UK income tax and capital gains tax systems (which operate as two separate regimes of tax) take into account the “residence” status of an individual, as well. The residence rules were massively overhauled with effect from 6th April 2013. Note that a UK tax year runs from April 6 to April 5 of the following years.
Because of quirks in the English common law approach to determining domicile, in extreme cases it is possible for several generations of a family whose patriarch was domiciled at birth outside of the United Kingdom to live in the United Kingdom without becoming UK domiciled. As a result, these “non-doms” enjoy certain UK income and capital gains tax advantages, which various political parties in the United Kingdom have threatened for years to restrict or eliminate altogether. (more…)