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