The recent pre-Budget report in the UK has become known for its proposals to change the income tax a...
The recent pre-Budget report in the UK has become known for its proposals to change the income tax and capital gains tax rules as they apply to UK residents domiciled elsewhere, writes Gerry Brown, tax and trusts manager at Prudential International.
However, there was one group for whom the changes offered the prospect of a tax advantage. UK resident Irish domiciled individuals had not previously been able to take advantage of the remittance basis of taxation where income, whether from investment or employment, arose in the Republic of Ireland.
These restrictions in the way the remittance basis of taxation applies to investment and employment income from the Republic of Ireland are to be removed with effect from 6 April 2008.
Of course the relaxation in the rules merely puts Irish domiciled individuals in the same position as other UK resident non-domiciles. Whether an individual can actually derive a significant benefit depends on his or her specific situation. As the UK changes were designed to expand the UK tax base it might be that relatively few individuals fall into that category.
Nine in 10 do not have income protection
Set to become part of Single Financial Guidance Body
Also plan to scrap NI on contributions
Eight-week high against US dollar
Lower cost option for advisers