Non-Doms: The New Political Battleground
By International Adviser, 10 Apr 15
Some commentators were prompted to say that the election battle began in earnest earlier this week, with Ed Miliband’s announcement Labour will do away with the rules which provide for the remittance basis of taxation in the UK.
The remittance basis of taxation dates to colonial times and, like many old bits of legislation, works rather well in the modern British economy.
It is based on the concept of domicile, and – reflecting its age – presupposes that in most cases someone takes their domicile of origin from their father.
Hence, if your father’s home jurisdiction was not the UK, you inherit that domicile from him. If you are foreign domiciled, yet live in the UK, there can be significant tax benefits.
If you are born in the UK yet form very strong connections elsewhere then that can become your domicile of choice, and remain so even if you return to the UK for a time.
This does require very strong proof, notwithstanding what has recently been said!
Tags: Non Doms
