Non-domiciled UK resident individuals claiming the remittance basis
|Capital gains tax annual exemption||nil||nil|
|Capital gains tax rate (basic rate taxpayer: 10%) *||20%||20%|
Remittance basis charge
|Income limit - remittance basis automatic||£2,000||£2,000|
|Medium-term resident - 7 of the previous 9 tax years||£30,000 p.a.||£30,000 p.a.|
|Long-term resident - 12 of the previous 14 tax years||£60,000 p.a.||£60,000 p.a.|
* Gains on carried interest and chargeable residential property - 8% surcharge
The remittance basis of taxation for non-UK income and gains must be claimed by most taxpayers who are UK resident but not domiciled here.
Those with unremitted foreign income and gains below the limit of £2,000 are automatically entitled to the remittance basis, with no loss of personal allowances.
Where the remittance basis is claimed the taxpayer loses their right to UK income tax personal allowance and capital gains tax annual exemption.
For those who have been resident for the year of claim and meet the previous residency conditions shown, the remittance basis is only available on payment of the amount shown, as a tax charge for continuing to use the remittance basis.
This payment is in addition to the tax on remitted income and gains. The charge does not apply to children aged under 18. The charge counts as UK tax paid for the purposes of Gift Aid.
If funds are remitted to the UK to pay the remittance basis charge, tax will be due on any remitted income in the normal way. However, it is permitted to pay the charge direct from a foreign source and avoid additional UK tax if structured correctly.
Non-domicile status for income and capital gains tax purposes has been withdrawn for non-domiciled individuals who have been UK resident for at least 15 of the previous 20 years.
Previously a remittance basis charge of £90,000 applied to those individuals who had been resident for more than 17 years out of the last 20 tax years and who were claiming the remittance basis, but now they are taxed on the arising basis.
Those who were originally UK domiciled and are resident in the UK for any tax year are also deemed to be UK domiciled for that year.