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Where Taxpayers and Advisers Meet

Domicile

hiya
Posts:23
Joined:Mon Nov 23, 2009 9:24 pm
Domicile

Postby hiya » Mon Nov 23, 2009 9:36 pm

I was born in India and both my parents were born in India. So I suppose I am Indian domiciled. I have been in UK from June 1993 but intend to return to India after retirement. I visit my place in India at least once and sometimes twice a year with my family. I understood the relevance of Domicile only in the last 2 days but have always ticked the box as resident/domiciled in UK ( wrong I realise now!). I am confused whether to go for New Disclosure opportunity for my overseas interest (I have not remitted them to UK) or tell HMRC I was wrongly filling my TAX return? Looking forward to your advise? Also add the details of Tax advisors who can help me?

Thanks

hiya
Posts:23
Joined:Mon Nov 23, 2009 9:24 pm

Re: Domicile

Postby hiya » Tue Nov 24, 2009 9:19 am

Hi all,

I am unable to edit my previous post and hence this.

If I (through a Tax advisor) tell the HMRC I have been India domiciled and that I marked it wrong in my SA returs, what are the chances HMRC will accept it? I then can request correction of my Self assessment form for the previous years.

Can you please suggest the details of some Tax advisors who can help with this,

Thanks again

hiya

Barry Hallam
Posts:22
Joined:Wed Aug 06, 2008 3:35 pm

Re: Domicile

Postby Barry Hallam » Tue Nov 24, 2009 10:34 am

As you have been here since 1993 you are clearly in the scope of paying £30k to keep the Remittance Basis or going on the arising basis.

As for the past - as you have not remitted anything there shouldn't be a problem - you can claim the remittance basis retrospectively for in-date years - as there should be no tax at stake it may not be necessary.

If you Google "Non Dom Tax Adviser Accountant" you should find someone who can help.

Taxbar
Posts:1187
Joined:Wed Aug 06, 2008 2:19 pm

Re: Domicile

Postby Taxbar » Fri Nov 27, 2009 5:04 pm

Barry,

Since HMRC stopped giving rulings on Domicile you will need a proper legal opinion and that is now the starting point for most new Domicile claimants.

HMRC will give some weight to a well drafted legal opinion that considers the clients personal cirucmstances and the law in this area.

There has to be some valid reason for wanting to claim Indian Domicile, however.

At the moment by virtue of the UK/Indian Estate tax treaty non-Uk assets are exempt from UK IHT.

Subject to the £30k annual charge foreign source income and gains can also be deferred.

I advise on Domicile issues and draft legal opinions, if appropriate.

Daniel Feingold
Senior Partner
STTP
info@stratax.co.uk

maths
Posts:8223
Joined:Wed Aug 06, 2008 3:25 pm

Re: Domicile

Postby maths » Fri Nov 27, 2009 5:40 pm

Assuming you are not UK domiciled then there is no reason to disclose to HMRC any non-UK source income or capital gains which you have not remitted to the UK; the Disclosure Facility to which you refer is in this case irrelevant.

As mentioned by others, your long term UK residency suggests the possible need to pay £30,000 for tax year 2008/09 if you want to claim the remittance basis for this tax year (this may not be necessary if your non-UK source income and gains not remitted to the UK in 2008/09 fall below £2,000).

Whilst domicile is dependent upon your precise facts, prima facie, on the limited information provided you may well have a strong case to support a non-UK domicile status.

hiya
Posts:23
Joined:Mon Nov 23, 2009 9:24 pm

Re: Domicile

Postby hiya » Fri Nov 27, 2009 10:12 pm

Thankyou very much Barry, Taxbar & maths for your valuable advice.

I think I fulfill the criteria for being non domiciled. I will disclose my overseas income - the bank interest on an arising basis from 2008-2009. If I go for Disclosure I may not lose much in way of money but it implies I have evaded tax for this long. I don't want this label as I have not done it knowingly. Had I understood this Domicile rule before (my mistake, I agree) I would have approached the HMRC long time back.

As Taxbar said it is time to seek legal opinion on this now. Assuming I satisfy the rules,what are the chances of success in my case esp as I haven't been declaring it on the SA form? Is it possible to request correcting the previous Tax returns? Will the HMRC interpret it as I have acquired the domicile of choice?

Thanks again, very much appreciated,

Hiya

maths
Posts:8223
Joined:Wed Aug 06, 2008 3:25 pm

Re: Domicile

Postby maths » Sat Nov 28, 2009 7:49 pm

I think the point is that if you are non-UK domiciled but have never remitted overseas income/gains to the UK, whether you "claimed" non-domicile status on your Tax Returns or not in the past ultimately in principle doesn't matter

RE your 08/09 Tax Return, if you do not pay the £30,000 then you cannot claim non-dom status; hence interest etc arising on overseas accounts will need to be declared.

This may cause the Revenue to raise questions; it may then become necessary to at that point demonstrate your non-domicile status in order to substantiate why you had not declared the overseas income in the past.

hiya
Posts:23
Joined:Mon Nov 23, 2009 9:24 pm

Re: Domicile

Postby hiya » Sat Nov 28, 2009 8:07 pm

Hi maths,

Even if I pay £30000, still the HMRC will want to know why I claim to be non domiciled, isn't it? So I suppose even if I pay on 'arising basis' or £30000, I have to claim to be non domiciled in this tax return (08-09). Am I right?

What do you think the chances that the HMRC will agree I am non domiciled? Any experiences?

Thanks again
Hiya

bads1000
Posts:1
Joined:Sun Nov 29, 2009 4:56 pm

Re: Domicile

Postby bads1000 » Sun Nov 29, 2009 5:16 pm

Hiya
I am in a similiar position to you , but in Uk since 1997,
only now have understood the concept of domicile for tax purpose and going thro the flow chart on HMRC website - I think I am non domicile
I do not remember filling any supplementary residence forms for self assessment for the last few years......
again I have not remmited any money into U.K.
I was thinking of writing a letter to my local HMRC, to treat me as non dom remmitance basis retrospectively for my resident years before 5april 2008
any views/opinions appreciated.

bads1000

hiya
Posts:23
Joined:Mon Nov 23, 2009 9:24 pm

Re: Domicile

Postby hiya » Wed Dec 02, 2009 8:36 am

Hiya
I am in a similiar position to you , but in Uk since 1997,
only now have understood the concept of domicile for tax purpose and going thro the flow chart on HMRC website - I think I am non domicile
I do not remember filling any supplementary residence forms for self assessment for the last few years......
again I have not remmited any money into U.K.
I was thinking of writing a letter to my local HMRC, to treat me as non dom remmitance basis retrospectively for my resident years before 5april 2008
any views/opinions appreciated.

bads1000

Hi bads1000,

Some of the messages I sent to you through this site may not be reaching you? You can contact me via my e mail address entraman@hotmail.com.

hiya


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