Non-domiciliary UK Tax Compliance

The UK tax rules are attractive for non-UK domiciliaries. Non-doms can be taxed on the remittance basis so that non-UK source income and gains are only subject to tax if brought into the UK. Turcan Connell can advise on the remittance rules and strucutring clean capital accounts, in addition to attending to your ongoing UK tax compliance requirements.

Split Contracts for Non-Doms

The UK Budget in 2014 introduced new rules on split contracts for non-UK domiciliaries. Under these arrangements, UK duties are performed and remunerated under one contract and non-UK duties are performed under another. All split contract arrangements should be reviewed in light of this legislation designed to tackle abuse of the rules.

UK Inheritance Tax Advice for Non-doms

Non-doms are only liable to UK inheritance tax on their UK situated assets. Even where a non-dom retains strong ties to their home jurisdiction they could still fall within the scope of UK inheritance tax on their worldwide assets. Turcan Connell can advise and implement structures to permanently hold assets outside the scope of UK inheritance tax

UK Residential Property Tax for Non-Doms

There are taxes on residential property valued at over £2million. These new taxes include the annual tax on enveloped dwellings (ATED) and new rules extending capital gains tax to corporate structures.

The 2014 Budget, extended these taxes so that they will apply to residential properties valued at only £500,000 and upwards. Turcan Connell can advise on de-enveloping and implementing alternative holding structures for residential property for non-doms.

Inheritance Tax for Non-domiciled Spouses

Unwelcome inheritance tax charges can result where a UK domiciliary leaves or gifts assets to their non-UK domiciled spouse. These rules can result in 40% inheritance tax applying on the first death, and in some situations, the same assets suffering inheritance tax at 40% on the second death. New rules on electing to be UK domiciled may be attractive to some"mixed domicile" married couples but taking advice and planning in advance is strongly recommended.

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