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Where Taxpayers and Advisers Meet

Remittance charge, Resident but Non dom

Yiannis17
Posts: 69
Joined: Wed Aug 06, 2008 3:43 pm

Remittance charge, Resident but Non dom

Postby Yiannis17 » Mon Jun 03, 2019 1:22 pm

Hello

I have a situation where someone has been resident in the UK from mid 2016 and preparing tax returns since then. They are also non UK Dom.

Does the remittance charge still apply to them? If they investment income in a European Country which has not been remitted into the UK?

Thank you.

AGoodman
Posts: 864
Joined: Fri May 16, 2014 3:47 pm

Re: Remittance charge, Resident but Non dom

Postby AGoodman » Mon Jun 03, 2019 2:12 pm

The remittance basis can apply if they make the election.

The charge will only apply from their 8th year of residence.

Yiannis17
Posts: 69
Joined: Wed Aug 06, 2008 3:43 pm

Re: Remittance charge, Resident but Non dom

Postby Yiannis17 » Mon Jun 03, 2019 2:30 pm

Thank you.

HMRC have picked up that they had overseas income. Does this need to be declared in the tax return? I was under the impression that they had to be resident 7 out of 9 for this to apply.

AnthonyR
Posts: 299
Joined: Wed Feb 08, 2017 2:33 pm

Re: Remittance charge, Resident but Non dom

Postby AnthonyR » Mon Jun 03, 2019 5:27 pm

Remittance basis is a claim. If they didn't claim it then they are taxable on the arising basis on worldwide income.

Is the client still in time to make the election for the year in question?
Anthony Rogers LLB CTA TEP
Fusion Partners LLP
anthony@fusionpartners.co.uk

AnthonyR
Posts: 299
Joined: Wed Feb 08, 2017 2:33 pm

Re: Remittance charge, Resident but Non dom

Postby AnthonyR » Mon Jun 03, 2019 5:28 pm

Just re-read it's from 2016 - so should be plenty of time to make the election and/or resubmit returns.
Anthony Rogers LLB CTA TEP
Fusion Partners LLP
anthony@fusionpartners.co.uk

Yiannis17
Posts: 69
Joined: Wed Aug 06, 2008 3:43 pm

Re: Remittance charge, Resident but Non dom

Postby Yiannis17 » Tue Jun 04, 2019 9:36 am

Apologies to go on about this one.

If remittance basis is claimed for someone who has only been resident here for two years, do they lose their personal allowance?

AGoodman
Posts: 864
Joined: Fri May 16, 2014 3:47 pm

Re: Remittance charge, Resident but Non dom

Postby AGoodman » Wed Jun 05, 2019 11:17 am

Yes, they lose IT and CGT allowances. The only difference at 7/8 years is the RBC.

AGoodman
Posts: 864
Joined: Fri May 16, 2014 3:47 pm

Re: Remittance charge, Resident but Non dom

Postby AGoodman » Wed Jun 05, 2019 11:19 am

They will/should also consider the remittance ramifications if they have/will or could remit any foreign income.


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