Consultation published on residence and domicile

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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...

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07th Dec 2007 15:33

.....but there's more...

....the document also raises the possibility of:

-- A £50,000 a year levy once you have been resident for 10 out of 12 years - That £100k a year for a couple if both Non Dom.

-- Deemed domicile for IT and CGT after 17 years (like IHT) - there must be many non doms who have alreday been here for 17 years and may find themselves on a world wide arising basis in 4 months time. Will they be leaving before April?

-- in addition to personal allowances the CGT annual exemption will be lost.


In a separate twist a bill has been tabled to bar those who elect for the remittance basis from sitting as an MP or in the House of Lords!

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By Anonymous
12th Dec 2007 13:18

Thanks Barry
Nicely summarised!

The Bill is a private members one, so it will be interesting to see how far it got.

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