Skip to main content

Remittance Planning

There are two ways of taxing someone who is not domiciled in the UK, the arising basis and the remittance basis. This, along with a number of other reasons, makes the UK an attractive jurisdiction to which people relocate. In effect we have one of the most favorable tax regimes for non-domiciled individuals.

If you are a non-domiciled individual resident in the UK (please see our Introductions to Domiciles guide), you have the option to elect to pay tax on the remittance basis. In essence, you will be taxed on income or gains earned in the UK or those earned offshore but then transferred to the UK. This can be extremely beneficial for individuals in certain circumstances but applying the rules efficiently is complex and without forethought and planning, it is possible to make a mistake inadvertently, potentially resulting in higher taxation or stranded assets.

As provisions within this area are so complex it is essential to seek expert advice to maximise your tax efficiency. Our International team can help you navigate through the rules and advise in building and maintaining your personal plan, tailored for your individual circumstances.

 

Useful Resources

An Introduction to Remittance Basis

  • In our Introduction to Remittance Basis guide we explain what it is and who can use it, as well as reviewing some of the rules and consequences of claiming the remittance basis.

An Introduction to Domiciles

  • Every year a significant number of individuals and families relocate abroad, whether this be leaving the UK or settling in this country. This guide is one in a series providing an overview of key topics within this area, in this case particularly focusing on the issue of domicile status.

Efficient Use of the Remittance Basis

  • In this article, we will explore how planning and maintenance is essential to make efficient use of the remittance basis, highlighting some of the main concepts of which to be aware.

For further information on how we can help you build and protect your wealth, please contact us.

Contact Us