Posted by Nick Day on 20 Mar 2012

Decrease in Non-domiciled Numbers

Evidence that the £30,000 annual Remittance Basis Charge (RBC) is impacting on the number of non-domiciled people who are residing in the UK has emerged.

A request made under the Freedom of Information Act has confirmed that the number of “non-doms” fell by 16% in the first two years that the RBC applied.

This can only strengthen the impression held by many that the UK’s reputation as an ideal hub for foreign employers and foreign entrepreneurs is in decline.

The recent upward spiral in UK tax and National Insurance costs reinforce the notion that the UK is not nearly as friendly a place for inward investment as it used to be a few years ago.

Unfortunately, longer-term non-doms will shortly see the annual RBC rise still further to £50,000 if they have been UK tax resident for 12 years.

UK resident non-doms can pay the RBC and as a result, pay UK tax on foreign income and gains only to the extent that the foreign income and gains are remitted to (or brought to) the UK.

There are rules for ensuring that non-doms are not penalised from bringing funds to the UK that are for the purposes of commercial investment, but great care needs to be taken in reviewing whether an election to pay the RBC should be made by non-doms who have resided in the UK for many years.

 

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If you would like to discuss whether an election to pay the RBC is the correct choice for you, please contact Nick Day on 01962 856 990 or by emailing nick.day@taxinnovations.com