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£30,000 Remittance Tax
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£30,000 Remittance Tax Charge
Some non UK domiciliaries will be required to pay a £30,000 annual tax charge for the privilege of using the remittance basis of tax after April 2008. This section includes some of our articles and submitted Q&A's on: - When the £30,000 tax charge applies
- How the £30,000 tax charge operates
- How to avoid the £30,000 remittance tax charge
You may also find our Non UK Domicile Tax Consultancy section of interest.
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UK tax choice for 2010/11 - £30,000 tax credit allowable by IRS?
Question: With the unappetizing choice ahead, would you please tell me whether the IRS is now recognizing the £30,000 'charge' as permissible for tax credit purposes? I currently pay on my worldwide income but, as I have adequate capital in the U.K. for the next tax year would clearly prefer the 'charge' as long as this is acceptable to the U.S. authorities. Thank you. . . .
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Non Dom - tax years of residence for 7/9 rule
Question: Does one need to count "student" years, i.e. years spent studying at the UK university for the purpose of 7 out of 9 years remittance rule even if one left UK afterwards and then came back to work and live here? . . .
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Payment of £30,000
Dear Sir I have looked on the HMRC website but cannot find where i should transfer the 30k if I am going to do it from offshore and directly to HMRC. Could you help ? many thanks . . .
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£30,000 charge and international deduction
Question: A person is Italian resident and UK resident as well and he chooses, for the UK side, to claim the remittance basis paying the £30,000 charge. In the Italian Tax return can he claim the £ 30,000 charge he paid in the UK? Is the £ 30,000 charge considered as a income tax and deductible according to the DTT? . . .
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Nominating only £100 for the £30,000 tax charge and future remittances
Question: a) Assume that I am claiming the remittance basis and am non-dom
b)Also assume that I nominate a minimum amount say 100 pounds in the nominated account
c) I understand that HMRC would automatically up the amount and i would have been deemed to have nominated 75k for the purposes of the 30k charge. My question is If c happens and after i have remitted and paid tax on all capital gains ,income etc will this mean that the deemed 75k income (I only nominate and fill in pound 100 in the tax form) can be brought into the UK or does it not qualify as i have only stated 100 pounds? I may have earned 75k but may not want to complicate matters by filling in all the details which are required. many thanks . . .
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Payment of the £30,000 and nominated account
Question: Dear Sirs, as far as I understand it is possible to pay the £ 30,000 charge from abroad directly to the HMRC without this payment being considered a remittance. Is this correct regardless of what bank account the payment of the £ 30,000 is coming from? (mixed fund, nominated income account and so on?) Yes, the £30,000 wouldn't be taxed as a remittance irrespective of which account it is from. Based on S809V it wouldn't be a remittance and therefore for instance if nominated income was used no nominated income is treated as having been remitted to the UK in that tax year you don't have to apply the 'ordering rules' etc. Secondly it is possible to nominate this tax year a bank account for a specific income and the following year change the bank account (and consequently the income to which it relates to?) Many thanks for your reply Kind regards . . .
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Non Doms - avoiding a remittance with the £30,000 RBC
02/12/2009
Non Doms who are using the remittance basis can avoid being taxed on overseas income or gains if they use that to pay the £30,000 as a direct remittance to HMRC. But how exactly does this exemption apply? In this article we look at how this exemption applies and the limits to what does and doesn't constitute an exempt remittance for the purposes of the £30,000 RBC. . . .
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Remitting offshore income after paying the RBC
Question: My friend and his wife are both UK res non-doms, but now deemed domicile for IHT (as been living in the UK for more than 18 years). They have joint accounts in Jersey and in Switzerland (for each country, they have two separate accounts, one for capital and one for income). They have decided to pay the RBC charge of £60,000. The bank account in Jersey has about £8,000 currently and generated an income of about £5,000. This is the account they want to nominate for RBC payment. The bulk of their money is in the Switzerland bank accounts, which generated an income of about £150,000 for 2008-09. But this income account in Switzerland also containes unremitted income from all the previous years (while they were resident in the UK). My question is about remitting money from abroad after paying the £60,000 charge. Can they remit £150,000 (i.e., £60,000 / 40%) from the Switzerland income bank account without incurring any further income tax in the UK? Or do they need to remit £150,000 using the Jersey account that they nominated, i.e., by transferring money from Switzerland to Jersey and then to the UK? Many thanks in advance for your help . . .
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£30,000 RBC and payment on accounts
Dear Sirs, A person meets the remittance basis criteria for a particular tax year and therefore needs to pay the £30,000. In January, when the taxpayer has to pay the RBC, is he requested to pay £ 15,000 as a first prepayment for this amount? I look forward to your reply Kind regards . . .
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Exchange rates for non doms based on new guidance in 2009
02/11/2009
Given that all entries on the tax return are in sterling non doms will need to convert foreign income and foreign capital gains into sterling if they're either charged on the arising basis or if they make remittances under the remittances basis. There will also be other occasions when non doms will need to convert foreign income and gains (eg in calculating whether or not unremitted income or gains falls above or below the '£2,000 de minimis limit). In this article we look at the rules after the new 2009 guidance . . .
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The £30,000 non dom tax charge and minimising payments on account
18/09/2009
Any non doms subject to the £30,000 tax charge will need to consider how their payments on account will be impacted. This is particularly the case where they swap and change between the remittance basis and the arising basis in different tax years. In this article we look at how to avoid having an adverse impact on your payments on account . . .
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