THE UK tax treatment is decided by your domicile status.
Although there have been changes to the rules over the years, it still remains as an attractive proposition for non-dom individuals in the UK.
What is non-dom status in the UK?
Non-dom status means that you do not have to pay UK tax on income from foreign investments or rental payments on property overseas or bank interest.
This also means that a person avoids UK inheritance tax.
周り 5 million people living in the UK could be able to claim non-dom status, but are unable to secure any tax advantage due to their income and gains soley being in the UK.
に 2018, it was revealed that the top three nationalities for non-dom status in the UK were American, Indian and French, と 93% born outside the UK.
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Can you be a non-dom British citizen?
Non-dom status is only available to British residents who claim that their domicile.
This means that most of their personal and financial interests is outside the UK.
UK residents who have their permanent home outside the UK may not have to pay UK tax on any foreign income.
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しかしながら, tax residence can be determined by the number of days you spend in the UK.
If you spend 183 days or more in any tax year in the UK, you will be a a UK resident.
But if you spend less than 183 日々, you can also become a tax resident depending on a number of factors, such as having a family or accommodation in the UK without becoming a tax resident.
How long can a non-dom stay in the UK?
You can live in the UK for as long as 15 years and pay little or no tax.
Those that have been a UK resident for 15 years of the previous 20 tax years will be deemed UK domiciled for all tax purposes.
Domicile will only apply for inheritance tax purposes on those that have been a UK resident for 17 years of the previous 20 tax years.
This means that the favourable non-dom tax regime won’t be in place for the foreseeable future.
しかしながら, 15 years tends to be enough time as many non-doms do not to stay in the UK beyond those years.
How do I qualify for non-dom status?
You do not pay UK tax on your foreign income or gains if:
- they’re less than £2,000 in the tax year
- you do not bring them into the UK
If your foreign income or gains is more than £2,000, you must report it in a Self Assessment tax return.
This is where you will either pay UK tax on them , or claim on the remittance basis.
If claiming on the remittance basis, you will only pay UK tax on income or gains that you bring into the UK.
But you lose tax-free allowances for income and Capital Gains tax.
If you work in the UK and abroad, you qualify for non-dom status, による gov website もし:
- your income from your overseas job is less than £10,000
- your other foreign income (such as bank interest) is less than £100
- all your foreign income has been subject to foreign tax (even if you did not have to pay, for example because of a tax-free allowance)
- your combined UK and foreign income is within the band for basic rate
If you qualify for non-dom, you will not need to do anything to claim on foreign income or gains.