Non Dom personal allowances

Non Dom personal allowances

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My client is being investigated for 2005/06 and HMRC have been notified of an offshore account which has not been declared.

I'm fairly certain I can establish a Spanish domicile for her, but if I do, does she lose her personal allowance which for many years has been set against her substantial UK Sched D income?

She is also concerned that this will make her liable to tax on her worldwide income in Spain.

Her Spanish income (none of it remitted to the UK) amounts to £3000pa, her UK income £35,000.
Simon T.

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By raufsheikh
22nd Feb 2008 22:21

domicile and personal allowances are seperate matter.
Her personal allowances are not effected if offset against her UK income which is fully taxable. If her Domicile status is confirmed, under current rules any income arising from her offshore bank account is taxable on remittance basis. However the deposits into the offshore bank account if made from UK should be from declared and taxed income before going offshore. Being domiciled in Spain does not mean being resident in spain. Hence the fear is exaggerated. Hope it it is clear & helpful.

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