Remittances from Foreign currency bank accounts
The Financial Secretary to the Treasury recently announced that the tax rules for non-doms were changing for those who make taxable remittances to the UK from foreign currency overseas bank accounts.
Until the date of the announcement on 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.
Draft legislation has now been published so that the law has the intended effect. The new rules will apply to all remittances made on or after 16 December 2009.