Non-domiciliaries and the remittance basis

FORTHCOMING CHANGE:Abolition of non-dom regime and introduction of residence-based IHT regime At Autumn Budget 2024 on 30 October 2024, the Labour government confirmed that it will proceed with plans of the former Conservative administration to abolish the remittance basis of taxation and replace it with a residence-based regime, to commence on 6 April 2025. The government also confirmed its intention to move to a residence-based regime for inheritance tax. The changes will also affect the rules determining excluded property status, the Abolition of protected settlements status of offshore trusts, and changes to overseas workday relief.

For information on these changes, including draft legislation published with Autumn Budget 2024, see: Autumn Budget 2024—Private Client analysis — International and Autumn Budget 2024 (paras 2.56 and 5.51), OOTLAR (para 1.3) and TIIN: Reforming the taxation of non-UK domiciled individuals.

This subtopic focuses on non-UK domiciliaries (non-doms) who are UK resident and their eligibility to claim the remittance basis of taxation.. For guidance on the tax position of non-doms who are resident outside the UK, see the Non-resident individuals—overview.

Introduction to the remittance

To view the latest version of this document and thousands of others like it, sign-in with UU��ֱ�� or register for a free trial.

TAKE A FREE TRIAL

Latest Private Client News

Family property and constructive trusts (Khan and others v Khan)

Private Client analysis: The claimants were five siblings who claimed various beneficial interests in four properties (the ‘Properties’). The defendant, their elder brother, stated that the intention within the family had always been that he, as the eldest, would hold the beneficial titles. The claimants made their claim on the bases of express trust, constructive trust of the type found in De Bruyne v De Bruyne and common intention constructive trust. There were also cross claims for account in regard to rental monies associated with the Properties and a counterclaim for damages for failure to collect rent and install tenants. The claimants were successful on almost every basis. Written by Adam Stewart-Wallace, barrister at Ten Old Square.

Question of the week: To what extent does section 27 of the Trustee Act 1925 provide protection for administrators on an intestacy against claims by unknown beneficiaries and creditors?

This Q&A considers to what extent Section 27 of the Trustee Act 1925 provides protection for administrators on an intestacy against claims by unknown beneficiaries and creditors.

Civil Justice Council publishes final report on procedure to determine mental capacity in civil proceedings

The Civil Justice Council’s final report on the procedure for determining mental capacity in civil proceedings addresses how mental capacity is assessed and managed in civil proceedings. It provides detailed guidelines and recommendations on evaluating mental capacity with the aim of ensuring that individuals' rights and interests are protected while maintaining legal clarity and fairness.

FTT refuses business property relief for serviced offices (Beresford v HMRC)

Tax analysis: In The Executors of KDL Beresford the First-tier Tax Tribunal (FTT) upheld HMRC’s determination that business property relief from inheritance tax was not available in respect of shares in a company. The company’s subsidiary’s activity of letting of parts of a commercial property as serviced offices was ‘wholly or mainly making or holding of investments’.

UU��ֱ��