re: US/UK income and non domicile

[tracyr]

I am a US citizen, UK resident but not domiciled. Some of my working time I spent in the US, and was paid there. I understand I can not remit this (or investment income on it) to the UK without attracting tax.

I also was paid into a overseas account for work I did within the UK (and paid UK tax on it.) I have earned investment income on this amount. My question is: what part of this can I remit to the UK, if any?

[Nigel Lord]

If you have overseas income and are not domiciled in the UK but resident here, you are liable to pay UK income tax only on amounts remitted to the UK.

Therefore, the US income will be taxable in the UK if remitted here and should be declared on your UK tax return in the tax year of remittance, however, you will be entitled to double tax relief on any US tax deducted from the income.

The income derived from the UK employment would be liable to UK income tax in the tax year in which it arose and should have been declared on your tax return. It appears that it has been taxed so no further liability should arise. As this is UK source income the remittance basis does not apply.

If you require any further assistance please do not hesitate to contact us, and we will be happy to act on your behalf.

Nigel Lord
Lord Associates
Taxation & Business Consultants
Caxton House
Old Station Road
Loughton
Essex, IG10 4PE
020 8418 9101 & 07769 931852
mail@lordassociates.co.uk