Non Doms & £30,000 remittance tax charge after 2011

Under the current rules a higher rate taxpayer would need to have overseas unremitted income of at least £75,000 (£30K * 100/40) to equate to a £30,000 tax charge. When you also add in the loss of the £6K personal allowance that a claim for the remittance basis would incur you're looking at having overseas unremitted income of at least £81K before it's worthwhile. For 2010/2011 the £75,000 income level applies however if you have substantial UK taxable income (eg income above £150K) you'd lose the personal allowance in any case due to the PBR changes (even if you claimed the arising basis). In this case the breakeven limit would be £75,000. For 2011/2012 if the non dom is a high earner the tax could be at 45%. In this case they would need to have overseas unremitted income of at least £66,667 (£30K * 100/45) to equate to a £30,000 tax charge. As above you'd need to assess whether the personal allowance would be available if the arising basis was chosen (eg whether there was other substantial UK income that would exceed the personal allowance income limits). If there was substantial UK income it wouldn't be available anyway and therefore you'd need to have unremitted overseas income of at least £66,667. This is quite a drop over the current year 'breakeven' limit of £81,000.