As recently reported in the FT*, those claiming non-domicile status in the UK may well receive a letter from Her Majesty's Revenue and Customs (HM Revenue and Customs or HMRC) is a non-ministerial department of the UK Government responsible for the collection of taxes, the payment of some forms of state support and the administration of other regulatory regimes including the national minimum wage.... More gently reminding them that non-UK income/gains which they remit to the UK are taxable.
The definition of a “remittance” is very broad, and captures most ways in which a non-domiciled taxpayer may make use of offshore cash directly or indirectly in the UK. Use of a non-UK credit card in the UK is a common example, and the complex rules can catch out the unwary.
Careful planning is usually required to avoid these such constructive remittances, and we can help to structure bank accounts and investments overseas to make the most of non-domicile status.
Equally, where taxable remittances have been made, it pays to be proactive in making a disclosure to HMRC, as opposed to being the subject of an enquiry. We commonly assist clients in bringing their affairs up to date in this way, and there are a number of approaches which may mitigate any penalties.
HMRC’s letters imply an increased focus in this area, and we would expect to see more scrutiny on non-doms as a follow on to this.
Please contact us to speak to advisor about non-domicile status and how we can assist you.