Non UK Domicile 2012
UK residents and domiciles are taxed on their worldwide income and gains.
UK Resident but Non UK Domicile (introduced on 6 April 2008)
- Must pay UK taxes on their UK income and gains
- Can elect to be taxed on the Worldwide income and gains in the UK or
- Opt for the Remittance Basis people are only taxed on what they bring into the UK with an automatic tax charge originally in 2008 of £30,000 to be paid with no further questions about Worldwide Income.
New Non UK Domicile Rules 2012 - £50,000
The Budget March 2011 introduced a new limit of remittance basis tax charge of £50,000 from April 2012.
This is designed to encourage even more non UK Domiciles to declare Worldwide Income in the UK for tax.
Most Foreign high earning Non-UK Nationals will either pay taxes in the UK on all Worldwide income or pay a tax charge of £50,000.
Using Offshore Investment Bonds
Non UK domiciles living in or coming to the UK may wish to explore investing in offshore bonds and benefit from tax deferral without incurring a remittance basis charge.
For more on non UK domicile rules and advice contact us today.