Tax & Accounting News

More details of HMRC's remittance basis plans

11/12/2007

HM Revenue & Customs have published a consultation document containing further details of the proposed charge for the use of the remittance basis of taxation by non-domiciled individuals after 5 April 2008.

The proposed £30,000 annual charge will apply to individuals who have been resident in the UK for 7 out of the past 10 tax years, so there may be a little room for manoeuvre in some cases.

It is also now confirmed that it will be possible to opt in and out of the remittance basis, subject to any particular anti-avoidance measures.

Individuals whose unremitted offshore income or gains do not exceed £1,000 will not be subject to the £30,000 charge.

It is not yet possible to recommend any specific action, as a considerable amount of anti-avoidance legislation is still awaited.

What is known, however, is that after 5 April 2008 days of arrival in and departure from the UK will be taken into account in determining whether an individual is UK-resident in the year in question. This means that some individuals who 'commute' to work in the UK or who make regular visits will need to change their arrangements.

Please contact us to discuss any aspect of the new rules.

 

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