This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

7 of the last 10 years - non-dom rules

shawn_phade@yahoo.co
Posts:39
Joined:Wed Aug 06, 2008 3:05 pm

Postby shawn_phade@yahoo.co » Thu Jul 10, 2008 6:17 am

Can someone explain when the new rules would apply.

Say X became resident in May 2005. I guess if the question was asked (in retrospect) on April 6th 2005 the answer would be tax resident for 1 (the then current) year of the last 10 and so on; per the table below. On April 6th, 2011 the answer would be 7 (including the then current year) of the last 10, does that therefore make any offshore income from April 6th 2011 to 2012+ subject to the rules?

How many years resident asked on April 6th:
2005 1
2006 2
2007 3
2008 4
2009 5
2010 6
2011 7

Or does it have to be 7 completed years and you are not subjected to the new ruiles until April 6th 2012+?

Thanks
Shawn.

JSK TAXATION
Posts:200
Joined:Wed Aug 06, 2008 2:18 pm

Postby JSK TAXATION » Thu Jul 10, 2008 6:36 am

shawn_phade@yahoo.com,

S809F (1)(b) ITA states that "...the individual has been resident in the UK in at least 7 of the 9 tax years immediately preceding the relevant year...".

HMRC's notes on the draft legislation make it clear that they consider 'split years' as years of residence.

Hope this helps.

John S King
Chartered Tax Adviser
www.taxation-advice.com
John S King
Chartered Tax Adviser
e: help@taxation-advice.com
w: http://www.taxation-advice.com
01732 897850

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

Postby maths » Thu Jul 10, 2008 9:50 am

The new rules apply from 6.4.08.

Assuming you are non-UK domiciled if you wish non-UK source income and capital gains to be subject to UK tax on the remittance basis then a claim needs to be lodged each tax year starting 2008/09.

The above applies (subject to certain exceptions) irrespective of the number of prior tax year's residency.

The 7 out of the previous 9 tax year rule, if satisfied, creates the additional requirement to pay the £30,000 if remittance basis treatment is required.

In your example the £30,000 would be triggered for the first time in the tax year 2012/13 not 2011/12.

Steve'o
Posts:1
Joined:Wed Aug 06, 2008 1:52 pm

Postby Steve'o » Mon Jul 28, 2008 3:52 pm

So assuming person "x" is declared non domicile by choice and has completed a dom1 to that effect, what method (assuming there is one) does the HMRC use to prove or disprove this state of mind?


Return to “Income Tax”