We have had dealings with clients who fall into the above category.
If you fall into this category then there are lots of planning opportunities.
The Remittance Basis
Remittance basis users don’t pay UK income tax or capital gains tax on non-remitted overseas income or capital gains. They do pay UK tax on UK income and capital gains, onshore and offshore bond chargeable event gains, and un-taxed overseas income and capital gains remitted to the UK.
If you have foreign income and/or foreign capital gains and you are UK resident but not domiciled in the UK, you can choose to be taxed on the remittance basis. If you do choose this option you may have to pay a charge of £30,000 or £50,000, known as the remittance basis charge, for each tax year in which you use the remittance basis.
Prior to the 6th April 2013, you could also choose to be taxed on the remittance basis if you had foreign income and you were resident but not ordinarily resident in the UK. However, from that date the concept of ordinary residence has been abolished for tax purposes.
There are other options away from the remittance basis by using various offshore tax schemes which many of the major international investment banks seem to avoid using. We believe that if your investment bank is currently recommending the remittance basis then you should certainly consider reviewing your circumstances with an Independent Financial Adviser who will work on your behalf to establish the best structure for your assets.
if your investment bank is currently recommending the remittance basis then you should certainly consider reviewing your circumstances...
This is a highly specialised area which most people find confusing. We have links with an accountant who also possesses specialised knowledge in this area and are happy to work together to try and ensure that your wealth is not compromised by poor tax planning decisions.
What to know more? Click 'Ask an Adviser' now.