How non doms are effected by the 2009 Pre Budget Report
Given the substantial changes to the tax regime for non doms over the last couple of years, many non doms will be interested in how they'll be effected by the 2009 Pre Budget Report.
At the 2008 Budget the Chancellor confirmed that there would be no significant changes to the remittance basis for the lifetime of that Parliament and the next. They've kept to this and the 2009 PBR notes don't have any specific provisions applying to non doms.
Offshore account anti avoidance rules
The main impact for non doms is that under HMRC proposals in the consultation document the anti avoidance provisions which will apply to holders of offshore accounts won't apply to non doms using the remittance basis.
It's still very early days yet and the proposals are just that, very brief proposals which will in all likelihood significantly change prior to introduction. However the current proposals state that they're considering a new notification requirement for anyone holding an offshore account in certain countries which has over £25,000 in it.
They've not stated the countries that this will apply to but it will be countries which don't have adequate exchange of information arrangements with the UK.
This will therefore mean that UK residents would need to notify HMRC about the offshore account within a specified time limit. If not they'll charge you penalties.
Non Doms
The notification won't apply to non doms who are claiming or using the remittance basis. So if you:
You wouldn't need to specifically notify them of the account. If you use the arising basis of tax then you'll be treated as any other UK resident and would need to notify.
There are no other specific measures which effect non doms. Non Doms will of course be impacted by many of the other general tax changes eg:
About the Author
The Author of this article/answer is our site Editor, Lee Hadnum. Lee is a rarity among tax advisers having both legal and chartered accountant qualifications. After qualifying a prize winner in the Institute of Chartered Accountants exams, he also went on to become a chartered tax adviser (CTA).He worked in Ernst & Youngs Entrepreneurial Services department for a number of years before setting up his own tax planning practice. He is now a full time tax author.
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