Taxpayers with non-domiciled status are going to find themselves the targets of concerted scrutiny by the taxman: according to a report in today’s Accountancy Age by Calum Fuller.

HMRC believe that many Non-Domiciled individuals misunderstand the (extremely complex) rules regarding remittances of income and gains that arose in earlier years; leading to understatements of tax due.

HM Revenue & Customs are now writing to UK resident Non-Doms regarding remittances in 2011/12.  Many Non-Doms do not fully understand what constitutes a remittance: particularly with regard to so-called “constructive remittances” i.e. sums they benefit from but do not receive directly. Also many do not appreciate that remitting income and gains that arose before the “New Rules” of 2008 can lead to a tax charge: sometimes even though the same money could have been remitted tax-free before 6 April 2008.

HMRC hope the letters prompt non-domiciliaries to seek professional help; and if appropriate  disclose any taxable remittances omitted from previous Tax Returns.  In some cases, HMRC’s approach will lead to a full scale tax enquiry.

What Does This Mean For Me?
If you are UK tax resident but not domiciled in the UK then the question of remittances is crucial to getting your tax return right. The rules are extremely complicated, with many leading tax professionals stating that they are virtually unintelligible.  HMRC’s view that many people do not understand the rules is almost certainly an accurate one. However, it is also true to say that many Tax Inspectors misinterpret the rules also. If you are a non-Dom and do remit sums to the UK, then you almost certainly need specialist professional help.

How Can Lynam Tax Experts Help Me?
Lynam Tax specialists have scores of years of experience in dealing with non-Dom’s and remittance issues. We are currently helping many clients with this complicated matter.

If you would like to discuss your situation: for an initially free and wholly confidential conversation, please telephone:
Paul Lynam on: 0845 643 9997
or
Andrew Nutbrown on: 07718 778710