UK Non-Dom Tax Regime

Many countries in Europe have special tax regimes that new residents can take advantage of, and one of those is UK’s non-dom tax regime.

What is UK’s non-dom tax regime?

A: The UK’s non-dom tax regime is a set of rules that allow individuals who are not domiciled in the UK to pay tax on their income and gains that they bring into the UK at a lower rate than UK residents. Non-doms are taxed on their UK income and gains at the same rate as UK residents, but they can choose to pay a flat rate of £30,000 per year instead if they’ve been here for at least 7 of the previous 9 tax years
£60,000 for at least 12 of the previous 14 tax years. This flat rate is known as the remittance basis charge. Non-doms can also choose to pay tax and try to reclaim it based on one of the UK’s many reclaimation rules.

Who can apply to the UK’s non-dom tax regime?

A: The UK’s non-dom tax regime is available to individuals who are not domiciled in the UK. This includes individuals who are not UK citizens, but who are resident in the UK for tax purposes. To be eligible, individuals must have been resident in the UK for at least one of the previous three tax years.

What are the benefits of UK’s non-dom tax regime?

A: The main benefit of the UK’s non-dom tax regime is that it allows individuals to pay tax on their income and gains that they bring into the UK at a lower rate than UK residents. This can result in significant tax savings for non-doms. Additionally, non-doms can choose to pay a flat rate of £30,000 or £60,000 per year instead of paying tax on their UK income and gains. This can also result in significant tax savings.

What is the process for applying to UK’s non-dom tax regime?

A: To apply to the UK’s non-dom tax regime, individuals must complete a Self-Assessment tax return and submit it to HMRC. The application must include evidence of the individual’s non-domiciled status, such as a passport or other proof of identity. Once the application is approved, the individual will be able to take advantage of the UK’s non-dom tax regime.

Can a person apply to UK’s non-dom tax regime before becoming a resident?

A: No, a person cannot apply to the UK’s non-dom tax regime before becoming a resident. To be eligible, individuals must have been resident in the UK for at least one of the previous three tax years.

How can I learn more about UK’s non-dom tax regime?

The best way to learn more is by contacting the team at Moveanywhere to book a comprehensive consultation that will cover all the basics.

Moveanywhere’s team will analyze your case in terms of your current tax burden, income streams, asset portfolio, potential tax requirements, family composition and possible tax benefits, and what the best solution is for you. All you need to do is contact us today.