The Treasury has published a consultation paper on reforming the tax system as it applies to non-domiciled residents. The Government has also set out another consultation on its plans for a statutory residence test (SRT).
The aim of the non-dom consultation, the Government said, is to encourage individuals to invest in the UK while also ensuring a fair tax contribution. Details include increasing the existing £30,000 annual charge to £50,000 for non-domiciles who claim the remittance basis in a tax year and who have been UK resident in 12 or more of the 14 years prior to the year of claim; allowing non-domiciles to bring overseas income and capital gains to the UK tax-free for the purpose of commercial investment in UK businesses; and simplifying the way in which some aspects of the current rules work.
The Government is also consulting on rules it is considering for a statutory residence test. At present, there is no full legal definition of tax residence, meaning that the rules are unclear and complicated. To remove the uncertainty, the Treasury is proposing a framework for the SRT. There are to be four areas of consideration: accommodation; family residence; UK employment or self-employment; and a history of past residence.
More details on the consultation on the reform of non-domiciled tax can be found at: http://www.hm-treasury.gov.uk/consult_nondom_tax_reform.htm
More details on the consultation on the SRT can be found at: http://www.hm-treasury.gov.uk/consult_statutory_residence_test.htm
Don’t forget that we can make sure that you both comply with the rules and pay no more tax than you should be paying.