Non-domiciled taxpayer?

Non-domiciled taxpayer

Non-domiciled taxpayer?

5 April 2019 is an important date for taxpayers who have, until now, been treated as non-domiciled in the UK and so have had access to the remittance basis.

If you have a mixed fund as part of your assets, or you have been resident in the UK for 15 of the previous 20 tax years, you should read on.

Mixed fund cleansing

The window for cleansing mixed funds closes on 5 April 2019. This concession was introduced in 2017 and time is now running out to use it. Please call us if you think you may be able to benefit.

Broadly speaking, a mixed fund may be a bank account or investment portfolio, or an asset whose purchase was funded in part through a combination of untaxed foreign income or gains and clean foreign capital.

Normally, once a fund has been mixed it will always retain its constituent parts, and so any amounts/assets brought to the UK would be treated first as untaxed foreign income or gains.

The concession allows taxpayers to re-organise such mixed funds so that any income or gains that have been sheltered from UK tax are once again clearly identifiable as a separate pot, making for easier tax planning.

Deemed UK domicile

Following rules introduced in 2017, long-term UK residents will become deemed UK domiciled and so lose access to the remittance basis if they have been resident in the UK for 15 of the previous 20 tax years.

With the end of the tax year in sight, this is now an important time for anyone who may be affected by these rules to consider appropriate planning, especially if you are looking to realise overseas income or gains for use outside the UK.

Please contact our Private Client team on 01892 546 546 to discuss what this might mean for you.