transfer of income from offshore

[aiyu]

A UK resident & non dom wish to transfer £50k from overseas income held offshore to his UK domiciled/resident spouse ? Is such spouse to spouse transfer is free or must this be declared under the remittance basis because it's not capital. Many thanks.

[AdamS93]

Remittance is very complicated.

If you bring income to the UK it will be considered a remittance. If you transfer it to your wife first (or children for that matter) it doesn't get around this, it will still be a taxable remittance.

[AnthonyR]

Does the client actually claim the remittance basis each year (and pay the charge if appropriate)? If not then they should be declaring the offshore income and paying tax on an annual basis.

If they are claiming the remittance basis they should have an advisor who can run them through the consequences (which makes me fear they aren't claiming it).

[AGoodman]

A transfer to the UK is a remittance if the monies are brought in by you (the original recipient of the income), a spouse, a minor child (or grandchild) or various connected entities.
A remittance by an adult child can still be tax free provided none of the above benefit from it nor a minor grandchild (including any children of the adult child).

If the income arose pre-2008, the rules are a little looser, but they are pretty strict now.

And yes, the income would have been taxable anyway unless the individual was on the remittance basis when it arose.