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Where Taxpayers and Advisers Meet

Foreign Income

advisor31
Posts:14
Joined:Fri Nov 17, 2017 10:48 pm
Foreign Income

Postby advisor31 » Sun Mar 11, 2018 4:17 pm

Say a UK resident, non-domiciled has £200,000 that come from UK income. So this money is remitted, straight-forward money.
They decide to move this amount abroad and make £50,000 from dividend and capital gain in a later year.

On that later year, they decide to pay taxes on the remittance basis (paying the remittance basis charge). Am I right in saying that the £50,000 will not be taxed in the UK, and it will become unremitted income (they have to keep it abroad), but the original money (£200,000) remains remitted money that they can use in the UK without issue.

Thanks!

maths
Posts:8507
Joined:Wed Aug 06, 2008 3:25 pm

Re: Foreign Income

Postby maths » Sun Mar 11, 2018 10:01 pm

The £200K becomes capital and can be brought back to the UK tax free.

The 50K is taxable on the remittance basis.

Need to keep 50k in separate bank account to the 200K.


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