US - UK Treaty and Non domicile

[bahadur]

Hello,

Happy New Year all ! This is my first post so please forgive me if it's not right from start.

I was born in India and living in UK for more than 15 years. I like to claim first time non domicile in UK on tax return. please can someone confirm If I can claim exemption from UK tax on US employment under tie-breaker rule and Article 14, I'm dual resident of US and UK. I'm not sure if I am UK resident as per the dual treaty residence article between US and UK because I'm non domicile so if I can claim double taxation exempt on US income in the UK. Can I claim remittance basis for less than £2000 foreign interest from India and dual treaty US employment income exemption from the UK tax in same year ?

Thanks.

[bahadur]

I was not physically resident in the UK when I was receiving US employment income from a US company. But because of the SRT rule in the UK, I became a UK resident, split year treatment does not apply because I was not out of the UK for the full tax year, I was only there in the US between July and the following year August, so 14 months. I was working in the US on an L1 visa, I was living there with my immediate family, no permanent home in the UK during that time. I'm a UK citizen by naturalization. Under all these conditions, I'm a dual resident of the UK and US for these 14 months, and under the tie-breaker rule, permanent home, I'm concluding myself treaty residence of the US so that I can exempt US employment income from UK tax.

During this 14 months period, I also have less than £2000 interest income from the bank in India.

Following guidance on HMRC, https://www.gov.uk/hmrc-internal-manual ... intm153050, leading to this https://www.gov.uk/hmrc-internal-manual ... intm153320

Based on the above guidance, I'm thinking can I claim a remittance basis for less than £2000 India bank interest income where I don't pay any RBC because it's less than £2000 and in the same year can I claim dual treaty residence treatment on US employment income as well?

Thanks.

[ETaxConsulting]

As you have been resident in the UK for 15 of last 20 years you would be deemed domicile in the UK and therefore taxable on your worldwide income. Likely to be treaty resident in the UK as well and therefore worldwide income including interest from india and US employment income should be declared in the UK withHMRC giving you a credit for any taxes paid overseas.