international

Non UK Domicile 2012

UK residents and domiciles are taxed on their worldwide income and gains.

UK Resident but Non UK Domicile

• Must pay UK taxes on their UK income and gains

• Can elect to be taxed on the Worldwide income and gains in the UK or

• Opt for the Remittance Basis people are only taxed on what they bring into the UK with an automatic tax charge of £30,000 to be paid with no further questions about Worldwide Income.

New Non UK Domicile Rules 2012 - £50,000

The Budget March 2011 said that a new limit of remittance basis tax charge of £50,000 will be set from April 2012.

This is designed to encourage even more non UK Domiciles to declare Worldwide Income in the UK for tax.

Most Foreign high earning Non-UK Nationals will either pay taxes in the UK on all Worldwide income or pay a tax charge of £50,000.

Using Offshore Investment Bonds

Non UK domiciles living in or coming to the UK may wish to explore investing in offshore bonds and benefit from tax deferral without incurring a remittance basis charge.