Non domiciled individuals

Notes

1. The remittance basis of taxation for non UK income and gains must be claimed by most taxpayers who are UK resident but not domiciled here, or not ordinarily resident. Before that the remittance basis was automatic for non UK income and gains.
2. Those with unremitted foreign income and gains below the limit of £2,000 are automatically entitled to the remittance basis, with no loss of allowances.
3. Where the remittance basis is claimed the taxpayer loses his right to UK income tax personal allowances and capital gains tax annual exemption.
4. For those who have been resident for the year of claim and at least seven of the previous nine tax years the remittance basis is only available on payment of the amount shown, as a tax charge on unremitted income and gains. This payment is in addition to the tax on remitted income and gains. No UK personal allowances or capital gains tax exemption would be available. The charge does not apply to children aged under 18. The change counts as UK tax paid for the purposes of Gift Aid.
5. If funds are remitted to the UK to pay the £30,000 charge, tax will be due on any remitted income in the normal way. However, it is permitted to pay the charge direct from a foreign source and avoid additional UK tax.

Changes from 2012

The 2011 Budget included an announcement that the £30,000 charge will increase to £50,000 in 2012 for non domiciled individuals who have been resident for 12 or more years and who wish to retain access to the remittance basis of taxation. The £30,000 charge will be retained for those who have been resident for at least seven years but less than 12 years.