If you are not domiciled in the UK you will be well aware that basically overseas income and gains are not taxed in the UK if they are not actually remitted to the UK, unless you have been UK tax resident for at least 7 out of the last 9 tax years in which case the income and gains are taxed unless you pay £30,000 per tax year to entitle you to continue on the remittance basis.
We will be pleased to advise you on the new proposed rules coming in from 6 April 2012 as follows:
- 1. Increase in the annual remittance basis charge from £30,000 to £50,000 if UK resident for at least 12 of the previous 14 years. This would first apply to a non-domiciled individual who came to the UK before 6 April 2001 and has remained resident.
- The existing £30,000 charge will continue to apply if UK resident for 7 out of the previous 9 years, until the £50,000 charge applies.
- No tax charged on any foreign income or gains remitted to UK to invest in a qualifying business. This is a potential minefield, but full of opportunities, and needs careful consideration.