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Where Taxpayers and Advisers Meet

Non-domicile for UK Tax purposes - but have never declared

kmg45
Posts:4
Joined:Wed Aug 06, 2008 3:53 pm

Postby kmg45 » Sat May 26, 2007 6:44 am

Hi, I am Irish and 32 and have lived and worked in UK for most of last 9 years. Was reading an article in FT today and it seems I should be a non-domicile for UK tax purposes (irish born, irish father, intend eventually to return to ireland). Do I need to declare this to inland revenue or is it given? If I have never declared it in last 9 years can I still take advantage now eg transfer some savings offshore and declare myself non-domicile. Do i still have to declare the income?.

thanks for any help

liam fisher
Posts:33
Joined:Wed Aug 06, 2008 3:46 pm

Postby liam fisher » Sat May 26, 2007 8:16 am

There is a form DOM1 you can get from the Revenue if you are claiming non domicile for the first time.If the non domcile is accepted income overseas would be taxed on the remittance basis only.

kmg45
Posts:4
Joined:Wed Aug 06, 2008 3:53 pm

Postby kmg45 » Sat May 26, 2007 8:29 am

thanks, and it should not matter if I do it now given I have not done this in the nine years I have lived and filed tax returns in the UK.

funcrusherbill
Posts:106
Joined:Wed Aug 06, 2008 3:10 pm

Postby funcrusherbill » Sat May 26, 2007 9:03 am

You do not lose or change domicile simply because you never notified officialdom - its a question of fact. Based on what you say, you are without doubt Irish domiciled. You can transfer any money you like off-shore and accumulate the interest there free of UK tax - but remember Ireland is not classified as off-shore. However, in transferring moneyback to Ireland or Uk you must be careful. Basically, if you transfer interst, you are likely to be taxed, but you can transfer 'capital' tax-free (which includes money which was originally taxed income in the Uk which you saved in an off-shore account). The dodge is to have two off-shore accounts, making sure that the interest from the capital account is paid into the income account, which you do not touch. There are procedures by which you can turn this income into capital by freezing it for a complete tax year, and then closing the account (meanwhile you open a completely new 'income' account.

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

Postby maths » Sat May 26, 2007 9:47 am

Whilst domicile is a question of fact it needs to be formally claimed each tax year. This can be done on the Tax Return.

Even if you have not claimed before this does not preclude claiming now and in the future. However, expect questions from HMRC as a consequence.

If you beleive you are non-domiciled and so claim there is no need to disclose offshore (ie non-UK) income and gains unless they are "remitted" to the UK.

Note, however, Irish source income would need to be disclosed whatever your domicile status as the remittance basis does not apply to such income (although this is likley to change in the future).


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