Posted by Nick Day on 28 Mar 2014

Impact of the Budget for Expats

As the dust settles on the 2014 Budget delivered by the Chancellor last week here is a round up of some of the provisions for “expats” such as non residents and non domiciled individuals.

As the dust settles on the 2014 Budget delivered by the Chancellor last week here is a round up of some of the provisions for “expats” such as non residents and non domiciled individuals.

Personal Allowances for Non Residents 

The Government intends to consult on restricting the granting of UK Personal Allowances only to UK residents and those living overseas who have strong economic connections with the UK.  The Government’s basis for reviewing this area is that many other EU countries have rules of this sort.

Capital Gains Tax “Split Tear” Treatment

UK tax years can be divided or “split” into periods of residence and non-residence under certain circumstances and law will be brought in to make sure that capital gains made by an individual and taxed under the remittance basis of taxation in the overseas part of a split year of residence are not liable to UK capital gains tax if remitted to the UK.

Dual Contracts

Laws are to be brought in to stop UK resident non domiciled individuals from using the beneficial remittance basis of taxation in the UK for overseas employment income, where the UK and overseas employment duties are artificially separated out by using separate employment contracts with the same or associated employers.  The provisions will not apply to genuine arrangements that are not driven by tax avoidance.

Capital Gains Tax for Non Residents Owning UK Residential Property

The Government has confirmed that it will introduce a capital gains tax charge on the gains made from disposals of UK residential properties by non residents of the UK.  A consultation document is anticipated shortly paving the way for the new charge from April 2015 onwards.

Tax Innovations has over 30 years experience of advising expats. Please click on the following link for more information on the services we can provide for non resident and non domiciled individuals.

Contact Tax Innovations

If you would like any advice regarding the above article or would simply like to discuss other ways in which we could help you or your business, please contact us on 01962 856 990 or customerservice@taxinnovations.com.