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.
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 Mar 23, 2011.