Non-UK domiciled individuals consultation
A new consultation has been launched jointly by HM Treasury and HMRC. The consultation follows the Government’s announcement during the Autumn Statement on plans to enforce a three-year minimum claim period for the remittance basis charge. Comments were requested by 16 April 2015.
The changes seek to ensure that non-UK domiciled individuals (non-doms) are not able to arrange their tax affairs to pay the remittance basis charge on an ad hoc basis. Non-UK domiciled individuals also have the option for overseas income/gains to be taxable on the arising basis just as they are for any UK domiciled individual.
Currently, the remittance basis charge arises when a non-dom has been resident in the UK in seven out of the nine UK tax years preceding the one for which liability is being considered. The current £30,000 annual charge is increased to £50,000 for non-doms who have been UK resident for 12 or more years and who wish to retain access to the remittance basis of assessment. Non-doms who pay this charge are liable to UK tax on their income and gains arising in the UK, but only taxed on their overseas income and gains to the extent that they are brought into the UK.
This consultation seeks to clarify the reasons why individuals choose not to pay the remittance basis charge each year and why this can change from year to year. The consultation also seeks views on how a minimum claim period for the charge might apply as well as other alternatives to meet the Government’s objectives. The consultation is open for comment until 16 April 2015.