What to include/exclude -- Am I thinking along the correct lines please?

[Questions Questions]

Mr (possibly not UK domiciled) and Mrs (definitely not uk domiciled) will be resident because of time spent in Uk in tax year 2006/07.

Betweeen them they own an overseas incorporated property rental company which is active in its country of incorporation. All, without exception, management and directorship acts are performed and documented contemporaneously overseas in the country in which the overseas Co' carries on business. The mind and control of the company is without the UK.

Am I correct in thinking that when preparing their 2006/07 personal UK tax returns the affairs of the oversease company are not included in the individual returns of Mr & Mrs - rather Mr & Mrs should only be including in their Uk tax returns any dividends or emoluments from overseas Co' in accordance with the rules (remittance basis for non-uk domiciles)?

Would be grateful if someone could confirm or otherwise correct my understanding.

Thank you

[CDavey9501@aol.com]

It's that little word 'possibly' that may make all the difference:)

[Taxbar]

Domicile decisions require expert advice.

Don't shortchange your clients! Consult an expert and get written advice on their Domicile.


Are they Directors of the Company?

If they received emoluments. Have they got a contract that excludes any UK Duties and have they performed duties whilst in the UK for the Company?

It matters not where they are when they take the decisions only where the mind and management are tax Resident!

Are you sure that they do not have a Double tax treaty defence on Residence?


Daniel Feingold
Strategic Tax Planning
info@stratax.co.uk