Non Dom

Non Dom

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Hi all,

Sorry I'm not an accountant so my question is probably mundane!

I am French domiciled but resident here.

I earn a part time salary over here, but am also supported by money transferred in from my overseas bank account. The money going into that bank account is a mixture of gifts of income from my parents made overseas, and also rental income from a house I own in France. I transfer roughly £20,000 per year from this bank account to spend in the UK.

At the moment I assume I only have to declare my UK income here on my tax return. How will the new rules affect me?

Many thanks

Margarite

Margarite

Replies (4)

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By User deleted
26th Feb 2008 12:51

Thank you David
I pay tax on my income in France and remit it here net.

Given the amounts involved I will opt to use the double tax treaty, and also keep my income and gifts seperately.

Thank god, I thought I was bound to pay the £30k!

Many thanks

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By derbyshiretaxservices
25th Feb 2008 22:11

Non-UK domicile - remittances and the new rules
Margarite
The consultation period for the draft legislation does not end until 28 February but based on the information available at present and assuming the new rules will not be changed and will be effective from 6 April 2008 we know in very broad terms that:
>individuals who are resident but not domiciled or not ordinarily resident, who have been in the UK for longer than 7 out of the last 10 years will only be able to use the remittance basis upon payment of the annual charge of £30,000. The exception to this is where foreign income is less than £1,000. Otherwise, therefore, without payment of the £30K annual charge you will be taxable in the UK on your worldwide income and gains, the same as other UK taxpayers. If you are affected from 6 April 2008, the comparison you will broadly have to make is; will the UK tax you would suffer on your worldwide income and gains be greater than the £30K charge. If so it may be worthwhile considering paying the annual charge to use the remittance basis. If not then opting to pay UK tax on your worldwide income and gains with relief for any double taxation may be the solution. Obviously total foreign income & gains and how much would be remitted to UK will be the starting points for consideration followed by reviewing the impact of the UK/France double tax agreement. Also as the previous commentator suggested you do need to be certain of what constitutes remittable income in reviewing this matter and also your position up to date. If you are still seeking specific advice in this area then please feel free to email me at; [email protected].

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By User deleted
25th Feb 2008 17:08

Thank you
I will seek advice.

However my main concerns are - have I got to pay £30,000 per year? And do I still get a personal allowance in the UK?

Thanks

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By User deleted
25th Feb 2008 14:07

Not quite
Currently you should be declaring whatever income you earn in the UK as well as income you remit to the UK from France to live on.

Given that some of what you have remitted has been income from your French property this would be taxable in the UK. It is also a shame that your bank account has mixed income (rent and interest income) and capital (gifts) - which ideally should be kept separate.

You should ideally seek professional advice from someone used to dealing with non-domiciliaries as it does sound like you already have a problem in terms of making full declaration of your income, even before the new rules take effect.

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