An Individual 'Resident in the UK but has been a Non domiciled (DOM 1)' residing in the UK for more than 7 years out of the last 9 years, who has NOT Remitted any Income/Capital to the UK since 2008 and does NOT intend to do so- Has he or when would he have any obligation under 'Finance Bill 2012' to report/ declare his 'Non UK' Income for as long as no Income is remitted to the UK ??
System of Law: England-and-Wales
Nothing- I am most confused with the wording
"...their gains when they are BROUGHT into (remitted)the UK" so what if they are not brought into ??
Hi.If you meet all the criteria in paragraph 5.1.1 of HMRC6 then you need do nothing.If your unremitted foreign income is less than £2,000 per tax year you can use the remittance basis without having to make a claim to do so regardless of how long you have been living in the UK. See paragraph 5.5.1 of HMRC6.If your unremitted foreign income is £2,000 or more per tax year you will have to make a claim to use the remittance basis regardless of how long you have been living in the UK. See paragraph 5.5.2 of HMRC6.As you have been living in the UK for at least seven of the last nine years, then you will have to pay the Remittance Basis Charge if you wish to use the remittance basis and your unremitted income is £2,000 or more per tax year.Let me know if you have any further queries.TonyTax41088.4228433218
Sorry but to reiterate my question was to establish whether or not there is a difference between an Individual wanting to remit 'non UK' funds into the UK verses one that does NOT want to remit Funds- Does the 'Remittance charge of £30 000' apply to both on a regardless basis ?
If your foreign income is in excess of the limits I gave you before and you don't elect to use the remittance basis then you will pay UK tax on your foreign income whether you bring it into the UK or not. You won't pay the RBC.If you do not want to remit funds into the UK, that is effectively you choosing to be taxed on the remittance basis, ie you don't want to pay tax on non-UK income or gains and you may have to pay the RBC in addition to UK tax on foreign income or gains you do bring into the UK. If you want to remit some funds but not all, then you will pay UK tax on the income or gains you do remit and you may have to pay the RBC as well. See paragraph 5.7 of HMRC6. I can only surmise that the Act allows the taxpayer to choose the remittance basis in one year and not in the next to give the taxpayer a choice. Their unremitted income and the potential UK tax liability may be very low in one year in which case they will not want to pay the RBC of £30,000.TonyTax41088.4573067477
Inc Tax, CGT, Corp Tax, IHT, VAT.
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