FAQ
Am I a non-dom?
A “non- dom” is someone who does not have a UK domicile. Your domicile is a state of mind and circumstances. It is not the same as citizenship or nationality. Generally you take the domicile of your father at the time of your birth. This is known as a domicile of origin. This domicile of origin can stay with you all of your life or until such time as you change your domicile and establish a domicile of choice. A domicile of choice can only be established if you resolve to live in a country permanently, sever all ties to your domicile of origin and actually become resident in that country. A person who is resident in the UK in 17 out of the last 20 tax years may become deemed UK domicile for UK inheritance tax purposes only. Exposure to UK inheritance tax can be avoided by using an offshore trust.
Am I tax resident in the UK?
Generally, you are likely to be tax resident in the UK if you spend more than 183 days in the UK in any one tax year, or if you spend more than an average of 91 days in the UK over 4 consecutive tax years, or if you come to live in the UK with the intention of remaining in the UK permanently, or for 3 years or more, then you will be tax resident from the date of your arrival here. However, there is no statutory definition and residency depends on the facts of each case.
What are the consequences of non-domicile tax status?
If you are not domiciled in the UK, you have the option to declare and pay tax on your UK income and gains and on any foreign income or gains remitted to the UK, rather than your worldwide income. This is known as the ‘remittance basis’. However, since the introduction of the ‘remittance basis charge’ it is no longer always beneficial to claim the remittance basis; but with careful planning foreign income and gains can be structured to grow offshore, tax free.
How do I pay the £30,000 remittance basis charge?
The remittance basis charge is payable along with any further UK tax liability on 31st January following the end of the tax year. The £30,000 remittance basis charge can be paid from an offshore account without being treated as a remittance provided that it is paid directly from the offshore account to HM Revenue & Customs without passing through another UK account in between.
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