New draft legislation on the taxation of UK-resident non-domiciles will hit more people than first t...
New draft legislation on the taxation of UK-resident non-domiciles will hit more people than first thought, according to accountancy firm PKF.
Published on 18 January, the new legislation states that non-doms who wish to be taxed on the remittance basis for foreign earnings and gains will lose their entitlement to various personal tax allowances - for income tax, personal allowance and blind person's allowance, tax reductions for married couples and civil partners, and payments for life insurance; and, for CGT purposes, the annual exempt amount, currently £9,200.
This is in addition to the £30,000 annual charge already announced for non-doms who have been resident in the UK for seven of the last nine years and who wish to continue to be taxed on the remittance basis.
However, non-doms whose unremitted income and gains for a tax year total less than £1,000 will retain their entitlement to the various allowances and reliefs.
PKF tax partner Peter Harrup said: "There are measures in the draft legislation which will affect all non-domiciled individuals regardless of whether they have been here 60 years or 60 seconds. Anyone claiming non-domicile tax status needs to review their tax position urgently, however long they have been tax resident in the UK.
"It is particularly frustrating that these measures have only just come to light now in the draft legislation, having been left out of the consultation document published in December."
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