Changes to the taxation of some non-domiciled individuals with effect from 6 April 2012, were confirmed in the March 2012 budget.
What are the changes?
The Chancellor announced that there would be an increase to the remittance basis charge (RBC) to £50,000 from 6 April 2012 for non-domiciles electing for the remittance basis of taxation who have been resident in the UK for 12 or more of the previous 14 years. However the existing charge of £30,000 will remain for those individuals electing for the RBC who have been resident in the UK for 7 or more of the previous 9 years who do not qualify for the new higher charge.
Additionally, in a move to encourage business investment in the UK, foreign income and gains remitted to the UK in respect of certain commercial investments in business (qualifying investments in certain types of unlisted companies or companies listed on an exchange-regulated market) will not be subject to tax.
Resources
Reforms to taxation of non-domiciles proceed as statutory residence test is delayed
For further information or to discuss the issues raised, please get in touch.
