Individuals who are resident in the UK but domiciled elsewhere (‘non-doms’) can elect to be taxed on their overseas income and capital gains by reference to the amounts remitted to the UK, rather than the total amounts arising. A remittance basis charge varying from £30,000 to £90,000 may be payable by longer-term residents as the price of using the remittance basis.
The decision on whether or not to claim the remittance basis is made separately for each tax year. In January 2015 the government issued a consultation document proposing that it should only be possible to claim the remittance basis for a minimum period of three consecutive years.
Moore Stephens has recently submitted its response to this document, in which it argues strongly that a minimum period is inappropriate, and that the government’s proposals are based on a misunderstanding of how the remittance basis works in practice.
Private Client Tax team