In broad terms, there is a remittance if you have foreign income or proceeds from foreign gains and you bring them directly or indirectly to the UK so that you (or a ‘relevant person’) can enjoy the benefit of the income or gains in the UK.
What is remitted income?
The remittance basis is an alternative tax treatment that’s available to individuals who are resident but not domiciled in the UK and have foreign income and gains. Remittance basis is not available if you’re deemed domicile in the UK.
What is exempt foreign income?
Tax exempt foreign income This is income you earn while overseas in foreign service or on an approved project for 91 days or more. This can include income you earn if you are either: a member of the armed services serving overseas. on an overseas project approved by the Minister for Trade, Tourism and Investment.
Can a non dom make a remittance to the UK?
The second exception applies to non-doms who have no UK income or gains in the tax year (other than taxed UK income of less than £100), make no remittances of foreign income or gains during the year, and have not been UK resident for more than six of the previous nine tax years.
How is a non dom taxed in Ireland?
REMITTANCE BASIS OF TAXATION [§71 TCA 1997] An individual who is Irish resident but Non-Dom is taxed in Ireland on Irish-source income or gains and on the proceeds of any income remitted to Ireland. The remit – tance basis of taxation in Ireland means individuals are taxable on foreign income only when that income is brought into Ireland.
How are non domiciles taxed in the UK?
The remittance basis provides that such residents will be taxed on foreign income and gains only when they are remitted to the UK. The changes mean that after a non-domiciled individual has been resident in the UK for seven years they will only be able to use the remittance basis of taxation if they pay an additional tax charge of £30,000 a year.
Do you pay capital gains tax if you are non dom?
Every individual is entitled to a capital gains tax free allowance (£11,100 in 2015/16) so only gains in excess of this allowance will be chargeable to capital gains tax. A UK resident non dom claiming the remittance basis will lose their entitlement to this allowance.
