Tax Partners, Heather Thompson and Donald Simpson, give advice to non domiciliaries. Watch Heather and Donald's video here on non domiciliary advice.
Heather: "Non-domiciled individuals who come to live in the UK as residents, but who remain non-domiciled, will find themselves within the scope for UK taxation so they'll have to think about UK Income Tax and UK Capital Gains Tax.
There is a special basis of taxation for these people called 'The Remittance Basis', which allows them to pay tax only on foreign income and gains they actually bring into the UK. So, provided they take advice in plenty of time and plan well ahead, they can arrange their affairs to keep their foreign income and gains out of UK taxation. Depending on the circumstances, they may have to pay a charge in order to do that and whether it's worth paying the charge depends on each individual case. So, there's a detailed exercise of looking at each individual person's situation and deciding what is the best planning for them."
Donald: "Special Inheritance Tax rules apply for people who are not domiciled in the UK or treated as being domiciled in the UK for Inheritance Tax purposes. So non-UK domiciliaries only have to pay UK Inheritance Tax on their UK-situated assets and not their foreign assets. Where they do have assets based in the UK, then the usual inheritance tax rate of 40% would apply with the nil-rate threshold remaining £325,000 of assets on which there would be no tax."
Heather: "Non-domiciled individuals coming to the UK can take advantage of tax rules, which allow them to hold assets through structures such as trusts and companies. Trusts can be a particularly effective way of holding their assets outside of the UK and protecting them from creditors' claims and so on, in a tax efficient way.
The UK tax rules are still fairly favourable for trusts set up by non-domiciliaries but, again, what is appropriate in any case depends on looking at that individual's situation, understanding the individual's personal circumstances and what their future plans are, and putting planning in place well before they come into the UK."