The remittance basis offers a favourable tax treatment for foreign nationals living in the UK
To fully take advantage of the remittance basis, it is essential to undertake pre-arrival planning to make sure your offshore affairs are structured correctly.
The remittance basis is a tax treatment that is only available to individuals who are tax resident in the UK but not domiciled in the UK (known as non-dom).
A non-UK domiciliary is an individual who is domiciled outside the UK for the purposes of English common law. Typically, a non-dom is a foreign national living in the UK. It means much more than “where I live” or “where my home is”. It is the sense of where a person belongs. It is also different to the tax concept of residency.
The remittance basis enables an individual to only pay UK tax on income or gains remitted to the UK rather than paying UK tax on worldwide income.
In addition, so-called clean capital can be brought into the UK without triggering income tax or capital gains tax.
We help you plan your stay in the UK by helping you understand:
- Whether the remittance basis of taxation would be advantageous to you
- Whether they are tax resident in the UK
- Whether they are a non domiciled person, known as “non-dom”
- How to structure your affairs, so that clean capital is kept separate