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Where Taxpayers and Advisers Meet

non domiciled remittance basis

hk1999
Posts: 8
Joined: Sat Jul 22, 2017 10:36 am

non domiciled remittance basis

Postby hk1999 » Mon Mar 11, 2019 4:50 am

My wife will become resident but non-dom and elect to pay on remittance basis (do we have to decalre the earings IF we dont intend to remit?).
Her overseas earnings will be in the form of Foreign and UK dividends by companies held with an offshore broker (Interactive Brokers Hong Kong)
Provided the UK dividends are not remitted to UK we assume no tax will be payable even though the earnings are from UK companies, can anyone confirm this or put me right on the subject?

If she also holds some UK shares with a UK broker will these dividends have tax allowances provided she doesnt remit any earnings from overseas?

Thank you in advance :D

darthblingbling
Posts: 228
Joined: Wed Aug 02, 2017 9:09 pm

Re: non domiciled remittance basis

Postby darthblingbling » Mon Mar 11, 2019 9:04 am

The dividends sound like they're UK sourced, so would be taxable in any scenario.

hk1999
Posts: 8
Joined: Sat Jul 22, 2017 10:36 am

Re: non domiciled remittance basis

Postby hk1999 » Mon Mar 11, 2019 9:59 am

The dividends sound like they're UK sourced, so would be taxable in any scenario.
Hi Darth, thanks for advise.
At the moment all our UK sourced dividends are not taxed because we are not resident in UK, I am hoping (obviously :D) that this will stay same if they are not remitted, when we beome resident but just under my wifes name, if this isnt possible we will have to buy overseas shares instead, not a big problem but just hassle to sell / buy.
I think we have other options such as Offshore Bonds which can hold UK equities and are not taxed if earnings arent remitted but this needs more investigating and further financial advise.

AGoodman
Posts: 770
Joined: Fri May 16, 2014 3:47 pm

Re: non domiciled remittance basis

Postby AGoodman » Mon Mar 11, 2019 2:45 pm

darthblingbling is correct. UK dividends are UK source so remittance basis does not apply to them. You would need to switch to foreign investments.

hk1999
Posts: 8
Joined: Sat Jul 22, 2017 10:36 am

Re: non domiciled remittance basis

Postby hk1999 » Mon Mar 11, 2019 6:25 pm

darthblingbling is correct. UK dividends are UK source so remittance basis does not apply to them. You would need to switch to foreign investments.
Hi AGoodman, thanks for your confirmation of Darthblingblings good advice! :)

maths
Posts: 7528
Joined: Wed Aug 06, 2008 3:25 pm

Re: non domiciled remittance basis

Postby maths » Tue Mar 12, 2019 1:13 pm

Dividends possess a UK source (and hence remittance basis inapplicable) if the company is resident in the UK (whether incorporated outside the UK or not).


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