Postby Roger Bailey » Sun Jul 22, 2012 6:50 am
Hi Maths,
I don't think either of my statements are wrong. You have to consider them as regards to IT, CGT and IHT. Have a look at SATR's prior to 2008. When my wife and I moved back to the UK from the UAE in 1996 my wife wanted to claim remittance basis taxation. To do this she had to fill in Form DOM 1 This was granted. Her domicile of origin ( New Zealand) was retained for IT and CGT purposes. There were further issues with IHT as at that time, if I had died and my wife inherited my Estate and she was considered NZ domiciled, IHT would have been payable on the amount that exceeded the NRB plus £55000. My wife's domicile for IHT purposes could only be decided after she died and all the facts had been looked at but as from 6/4/2012 she is deemed domiciled in the UK.
See below.
regards
Roger
Revenue & Customs Brief 17/09
Residence, Domicile and the Remittance Basis: Operational changes
The Finance Act 2008 made a number of changes to the remittance basis tax rules and some changes to the residence rules. These changes followed the ending of the review of residence and domicile which started in 2002. The changes can be found in sections 24 and 25 and Schedule 7 of the Finance Act 2008 but can be summarised broadly as:
•Most individuals now need to make an annual claim to the remittance basis.
•Individuals claiming the remittance basis of taxation, where they have unremitted foreign income or gains of £2,000 or more arising in the tax year, lose their entitlement to personal allowances and the annual exempt amount for Capital Gains Tax.
•The introduction of an annual £30,000 tax charge for adult remittance basis users resident in the UK in the current year and for seven or more of the previous nine years where they have unremitted foreign income or gains of £2,000 or more in the current year.
•Changing the day counting rules that determine when someone becomes resident in the UK under the 183-day rule to count as a day any day upon which an individual is in the UK at the end of that day (ie at midnight), subject to a new rule for transit passengers.
•Closure of a number of loopholes and flaws in the remittance basis that allowed people to bring untaxed income or gains into the UK tax-free.
In the light of these changes HM Revenue & Customs (HMRC) is making some changes to the way we deal with residence, domicile and the remittance basis of taxation.