Tax & Accounting News

Non-Dom rules set to stay in place

19/04/2010

Current rules surrounding non-doms, which came into force this year, are expected to stay in place for the foreseeable future, the government has said.

City minister Lord Myners said the concept of non-domicile benefited the UK economy, following calls from some quarters for the rule to be abolished altogether, and replaced with a system where residency was the key determiner of what tax was paid.

UK residents who were not domiciled in the country for tax purposes had to decide by 31 January this year whether to start paying UK tax on their worldwide income and capital gains, or pay a £30,000 Remittance Basis Charge (RBC) to remain taxable only on UK saved income and on remittance of overseas income outside the UK tax system.

All non-doms should review their UK and worldwide income, and seek advice if necessary, to determine whether they would be better off paying back tax on their worldwide income or the RBC.

The new rules are complex, and it is likely that HM Revenue and Customs (HMRC) will launch enquiries into some returns to ensure they are right, making it particularly important that there no mistakes, which could result in a large tax bill.

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