AS non-doms

Wed 03 Dec 2014

Non-UK domiciled individuals to pay more to keep the ability to pay UK tax when they want

Individuals who are resident in the UK for a number of years but who are not UK domiciled can elect to pay an annual charge so that they only pay UK tax on income and gains as and when they are brought into the UK.  The Chancellor announced increases in these charges for longer term residents in his Autumn Statement.

Individuals who have been resident for 12 out of the past 14 tax years will have to pay an additional £10,000 bringing their Remittance Basis Charge (‘RBC’) to £60,000 per annum.  Those who have been resident for 17 out of the past 20 years will be subject to a new RBC of £90,000 pa.  The charges for those resident for less than 12 years will remain unchanged.

The Government will consult on whether to introduce an election to pay the RBC for a minimum 3 year period.  This may limit the flexibility that many non-doms have to structure their affairs in such away to effectively chose when to pay the RBC and make their remittances in a tax efficient way.

Non-doms to pay more to keep the remittance basis and may still lose some flexibility #AS2014