News for non-domiciled individuals


Mixed news for non-domiciled individuals were presented in the Budget report 2011/2012, though overall there seems to be an acceptance by the Government of the positive impact their inward investment brings to the UK.

The bad news is that for non-doms who have been resident in the UK for 12 years or more the existing annual remittance basis charge will increase from £30,000 to £50,000 although not until 6 April 2012.

The good news is that the Government also proposes:

  • not to tax foreign income or capital remitted to the UK for the purposes of 'commercial investment in UK businesses';
  • to simplify some aspects of the current rules for non-doms to remove administrative burdens, which increased significantly from April 2008;
  • that no other substantive changes to the rules for non-doms are to be made for the rest of this Parliament.

The Government will issue a consultation document in June 2011 with a view to implementing the changes from 6 April 2012.

Residence

The Government will also be consulting on the introduction of a statutory definition of residence. Under current rules, the residency of individuals is a very grey area and greater certainty is only to be welcome. Again a consultation document is proposed for June with implementation of the new measure from April 2012.

Posted on 23.03.2011.

Get specialist advice

Please contact with one of our immigration lawyers by phone +44 (0) 207 907 1460 (London), +971 509 265 140, +971 525 977 456 (Dubai) or complete our enquiry

Contact us