Consultations on statutory definition of tax residence and reform of the taxation of non-domiciled individuals published
17 June 2011
The Chancellor announced in the 2011 Budget that the Government
intends to:
- reform the taxation on non-domiciled individuals
("non-domiciliaries") by:
- increasing the existing £30,000 annual charge to £50,000 for
non-domiciliaries who claim the remittance basis of taxation
("remittance basis") in a tax year and who have been UK resident
for 12 or more out of the 14 years prior to the year of claim;
- enabling non-domiciliaries to remit overseas income and capital
gains tax-free to the UK for the purpose of commercial investment
in UK businesses; and
- simplifying some aspects of the current remittance basis
rules.
- introduce a statutory definition of tax residence to create
clear rules that provide greater certainty for taxpayers and which
are simpler to use; and
- consult on these reforms and enact legislation changes with
effect from 5 April 2012.
The Government has today published its consultation documents on
the statutory definition of tax
residence and the reform of the taxation of non-domiciled
individuals. The Government invites views from
individuals, advisors, businesses and representative bodies who are
affected by, or have an interest in, the rules of tax residence and
non-domicile taxation.
HM Revenue & Customs has also announced that it is
considering the possibility of providing an interactive on-line
tool to allow self assessment of residence status when the new
statutory definition is introduced. A prototype of this on-line tool
is available and interested parties are invited to review this to
assess how a statutory test could operate in practice and to
provide comments.
The consultations close on 9 September 2011. If you wish to
discuss or would like assistance with participation in the
consultations please contact Penny
Wotton.