7th Dec 2007
The Government has published a consultation document Paying a fairer share: a consultation on residence and domicile which details the changes proposed in October's Pre-Budget Report.
The proposals are as follows:
- UK residents who are non-domiciled and have been taxed on their foreign income on the remittance basis will have to pay an annual charge of 30,000 to stay within the remittance basis if they have been UK resident for seven out of ten years. Alternatively, they will be taxed in the UK on their worldwide income.
- Users of the remittance basis also lose their tax free personal allowances, but they will be able to opt in for personal allowances if they decide not to use the remittance basis in any year.
- Day or part day counting rules will vary according to the country of d...