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Where Taxpayers and Advisers Meet

Non Domicile and Pre-residency saving credit

Mibrahim
Posts:2
Joined:Sun Jun 28, 2020 10:24 am
Non Domicile and Pre-residency saving credit

Postby Mibrahim » Sun Jun 28, 2020 11:16 am

Hello Everyone

I was wondering around the web and trying to answer to my question

I first moved to the UK in beginning of 2016, where I had 100% of my saving in another country where I used to work , as of my understanding moving this money will not impose any tax on them as I have earned them before stepping a foot into the UK (not resident in any meaning), during my stay here I moved about 60% of it to UK to purchase a house and allowance in here plus big portion was sent to my family to support them as well , so eventually Im left of about 40%, my question is, will this 40% considered as a balance of how much I can move to UK without being taxed ,even if it comes from different bank account and a new earned foreign income ? assuming I fall under the Non Domicile category and I only need to pay on what I bring to UK , Remittance basis

Regards
Mus

AGoodman
Posts:1745
Joined:Fri May 16, 2014 3:47 pm

Re: Non Domicile and Pre-residency saving credit

Postby AGoodman » Mon Jun 29, 2020 5:35 pm

The short answer is no.

The remittance rules follow the actual income, rather than just numbers, so you could remit the original 40% from the original bank account tax free but any income that has arisen after this will be taxable foreign income if remitted.

There are also mixing rules so if new income (or interest) has been paid into the original bank account (holding the 40%), they will be irretrievably mixed and bringing some of that income to the UK will also bring some of the income that has been mixed in with it.


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