Budget 2008

Remittance Basis for Non-UK Domiciled Individuals

• Applies from 6 April 2008.
• Remittance basis continues to apply to non-UK domiciled individuals who have not been resident in the UK for 7 out of the last 10 tax years*†.
• Individuals resident for 7 out of last 10 tax years are subject to an annual charge of £30,000 to continue with remittance basis‡§.

* If unremitted income and gains exceed £2,000 in a tax year, individual not entitled to personal allowance (and certain other income tax allowances) and capital gains tax annual exemption.
† Option to be taxed on an arising basis available.
‡ Not applicable to minors or individuals where unremitted income and gains in a tax year are less than £2,000.
§ Results in loss of entitlement to personal allowance (and certain other income tax allowances) and capital gains tax annual exemption.