Non UK Domicile 2012

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.