Initial figures suggest that around 74,000 UK tax residents claimed non-domicile status for the 2008/09 tax year of whom 4,600 UK claimed the remittance basis and paid the £30,000 Remittance Basis Charge; according to an answer to a parliamentary question.
Major changes to the UK taxation of so-called non-domiciliaries (non-doms) were introduced from April 2008. Many UK tax resident non-domiciled taxpayers want to know if they should pay tax on the arising basis (facing a UK tax bill on their worldwide income as it arises) or pay the £30,000 Remittance Basis Charge (RBC) and only be taxed on foreign income they bring into the UK in the year.
This is an extremely complex area. If you are UK tax resident but non-domiciled paying the RBC may be worthwhile if the following conditions apply to you:
- You have more than £2,000 of unremitted offshore income or gains;
- You have been UK tax resident for 7 of the preceding 9 years;
- You have offshore income of over £75,000 or offshore capital gains over £175,000 (which have not been remitted to the UK). [Figures based on current rates of tax for 2009/10].
If the above conditions relate to you, or you are the beneficiary of an offshore trust, a shareholder of an offshore company, are UK domiciled but ‘not ordinarily resident’ in the UK, or are unsure whether to pay the RBC then you need specialist tax advice.
Lynam Tax domicile specialists have decades of experience in dealing with tax residence and domicile issues.
Call Paul Lynam today for an initial free, confidential, no obligation, discussion: 0845 643 9997 or Andrew Nutbrown on: 07718 778710