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Where Taxpayers and Advisers Meet

Non-Dom clarification required.

Benny09
Posts:27
Joined:Wed Aug 06, 2008 4:05 pm

Postby Benny09 » Tue Mar 18, 2008 1:37 pm

Hi,

Have just moved to the UK about 6 months ago. I class myself to be a non-dom as I was born abroad and have lived abroad. However, my spouse and children have lived in the UK for almost 18 years and again, adopt the non-dom status. None of us have filed for non-dom status with HMRC. We hold a joint account offshore (IOM) in joint names which earns gross interest.

With the recent non-dom rules, will I and my family have to pay the £30,000 charge even though we don't want to remit/transfer any income to the UK from our offshore accounts?

I have researched on the internet and have come across statements that mention:

"Non-doms who have been living 7 years in the UK will have to pay £30,000...........and another statement stated that "no tax will be applied to offshore earnings as long as they are not brought into the UK".......

Which of the above apply to me and my family? Will we have to pay £30,000 (even though we can't) or will we be exempt as we don't want to remit any money to the UK?

Any help would be highly appreciated.

Thank you.

tom 7000
Posts:820
Joined:Wed Aug 06, 2008 3:30 pm
Location:Farnborough Hants
Contact:

Postby tom 7000 » Wed Mar 19, 2008 3:03 am

I think you missed the point- After you have been here 7 years you either

a) Enter your IOM income to your tax return and pay any taxes due on this

OR

b) Pay them £30,000

So you would need in excess of 75k of interst taxed at 40% to elect for b) assuming you are both high rate taxpayers

Seems to me as you havent been here 7 years the money in IOM should be in your name not joint names...

tom

AA UK
Posts:270
Joined:Wed Aug 06, 2008 3:22 pm

Postby AA UK » Wed Mar 19, 2008 10:59 am

The family will never pay £30,000. This is the amount your wife would pay if she claimed the remittance basis for 2008/09.

If you claim the remittance basis you lose the personal tax allowance.


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