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Remittance basis for Non-Dom


I am a non-Dom (37 years old), ordinary resident, and I came to work in the UK in September 2009. I have some overseas capital, on which I have made about £34k capital gains so far in tax year 2015-2016 ( Total capital in foreign account approx.£140k). Since I am a non-dom, I can choose if I should I want to be taxed on the arising basis or remittance basis, and I am considering which one of the two would be most beneficial to be for my 2015-2016 SA Tax return. Next to my capital gains, I have an income from employment of $44k ( I am expecting to keep a similar income for the foreseable future). I am not a home owner, and do not have any other income. If my capital gains stay as they are, I would have to pay £6,600 pounds on Capital Gains tax if I would be taxed on the arising basis.

I have file SA tax returns starting from tax year 2009-2010. This means that tax year 2015-2016 will be tax year 7 for me, and that in the tax year 2016-2017, I will be seen as a long-term resident, and will therefore have to apply the Remittance basis charge from next year onward if I wanted to use it for 2016-2017, but that does not apply yet for 2015-2016. Therefore, I do not intend to use the remittance basis in later tax years.

In some of the previous tax years, I have filed to be taxed the remittance basis, but this was only because my foreign income/gains were under £2000. 

I have not yet told HMRC that I would like to be taxed on the remittance basis for this tax year, so my current tax code assumes (for employment purposes) that my income for 2015-2016 would be taxed on the arising basis.

My current objective is to stay in the UK, and use part of the overseas capital to use for a deposit for a property in the UK (approx.£70,000)

My opinion is the following:

- If I was taxed on the arising basis, my tax bill for capital gains would be £6,600. 

- If I was taxed on the remittance basis then:

a. HMRC would have to issue me a new tax code for 2015-2016

b. I would loose my personal allowance on my current income, so this would be charged at the highest tax band. This would cost me £10,600 x 40%= £ 4240. 

c. If I was to remit £70,000 in a later tax year (say 2017/2018) to buy a property, the £34k profit from tax year would become a chargable gain in that tax year. In that tax year, I would then still have to pay £6600,see (

d. So, overall for all tax years combined, I would be better off using the arising basis for 2015/16, as I would be £4240 worse off if I would use the remittance basis for tax year 2015/2016.

Could any of you please confirm if my opinion is correct?




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My opinion is that you should have paid for some frigging professional UK tax advice as early as 2009.

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19th Feb 2016 14:05

That may have been true. But the idea to remain here only started last year-until then, it was meant to be temporary.


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19th Feb 2016 15:02

Any additional comments?

Any additional comments?


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19th Feb 2016 15:16

Specialist advice

It's a specialist area and warrants paid for advice. 
Are you sure that the capital you are planning to bring to the UK is definitely all capital and no historical income since you became resident?  I have spread sheets tracking client money round the world to make sure we get the capital /income split right. 


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19th Feb 2016 16:49


No, it is capital. In 2012 I transferred some £60k (earned income in the UK) over to my overseas account for buying into stocks. There was about £15000-£20000 on this account at the time. I made capital gains on this in 2012-2013, and 2013-2014, over which tax has been paid, because I taxed it on the arising basis.



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19th Feb 2016 19:40


Given the current state of stock markets, have you made a s16ZA election?

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20th Feb 2016 16:12

Re: 16ZA

No I haven't. Reading about it, this seems to only count if I want to claim the remittance basis for this year?

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20th Feb 2016 16:18

Re2: 16ZA

In previous tax years, I have made a variety of trades (about 100 in each tax year). I have asked HMRC how to claim this, and they advised me to fill a spreadsheet with gains on the individuals trades( converted to GBP) and losses on individual trades-which is what I did. Taxeswere paid over the sum of those gains and losses.



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23rd Feb 2016 11:47

Any additional comments?

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23rd Feb 2016 12:12

I would comment

that if you're going to commit to a decision on this based on an internet forum instead of going to see an accountant then you are mad, the amounts you're talking about more than warrant engaging a professional even if just for a one off consultation to ensure you are dealing with your affairs in the most effective way.

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