FAVOURABLE TAX TREATMENT

… Do you qualify for the remittance basis?

Reviewing an individual’s domicile status can be complex as there are many different personal variables to take into consideration when undertaking the analysis. Domicile has a massive impact on the way in which an individual is taxed in the UK, and so it is crucial to ensure that this is correctly reviewed.

Issue

A client of ours had a large amount of overseas personal income and was looking to understand his domicile status, to determine whether he will qualify for the remittance basis. The remittance basis is an extremely favourable tax treatment for nondomiciled individuals living in the UK. An individual’s domicile status is also relevant when looking at inheritance tax and estate planning.

Amie Manchester Tax Manager amie.manchester@etctax.co.uk

How we solved it

We were able to provide an advice report reviewing the client’s domicile status and planning advice in relation to claiming the remittance basis. This gave the client a clear opinion on their domicile status and meant they could confidently claim the remittance basis and had a clear understanding of the types and levels of his earnings which would be taxable in the UK.

Case of the month

Case of the month

The outcome

The client was able to benefit from claiming the remittance basis and clearly understood from the outset the UK tax saving this would allow him.

Wondering if you qualify for the remittance basis, please get in touch.