Non doms and the remittance basis
The tax rules for non-doms have changed for those who make taxable remittances to the UK from foreign currency overseas bank accounts.
Until 16 December 2009 a quirk in the legislation allowed, in certain circumstances, non doms to claim a capital gains tax loss, when remitting funds to the UK, equal to the original sterling value of the sums involved. A separate but related quirk also arose when a remittance comprised only part of the funds in the foreign currency bank account.
New rules have been announced, to correct these ‘anomalies’, and for which legislation will be introduced in Finance Bill 2010. The new rules will apply to all remittances made on or after 16 December 2009.