Navigating tax obligations as a non-domiciled (non-dom) individual in the UK can be complex, but Global Tax Consulting is here to simplify the process for you. Whether you’re a UK expat planning to return or a non-dom expat relocating to the UK, understanding how to optimise your tax position while staying compliant is essential.
What is Non-Dom Status?
Non-domiciled individuals live in the UK but have a permanent home (domicile) elsewhere. Your domicile status affects how your income is taxed. Specifically, if you qualify as a non-dom, you may have the option to be taxed on a “remittance basis.” This allows you to pay UK tax on foreign incomes and gains only if they’re brought into the UK, as opposed to paying tax on worldwide incomes and gains. While this can offer tax-saving benefits, understanding the nuances of the remittance basis is crucial, as it also carries restrictions and potential long-term costs.
At Global Tax Consulting, we guide non-doms through the complexities of their UK tax obligations and help them determine the most beneficial way to structure their finances while remaining compliant with HMRC. We ensure that you understand the specific implications of your domicile status, whether you need help with your UK tax return or want to maximise the benefits of your non-dom status.
Key Tax Considerations for Non-Doms
Remittance vs. Arising Basis: One of the core decisions non-doms face is whether to opt for the remittance basis or the arising basis of taxation. If you use the remittance basis, you pay tax on foreign income only if the income is brought into the UK. The arising basis, on the other hand, subjects your global income to UK tax. At Global Tax Consulting, we help you evaluate the best option based on your financial situation.
Foreign Income and Gains: Non-doms need to consider how income and gains from foreign investments or assets are treated. Even if you choose the remittance basis, you’ll need to manage your finances carefully to avoid triggering UK tax liabilities inadvertently. Our expert advisors help you navigate these risks and provide strategies to manage your foreign assets efficiently.
Annual Remittance Charge: After seven years of residence in the UK, non-doms who want to continue using the remittance basis must pay an annual remittance charge, which increases depending on how long you’ve been resident. This cost can make the remittance basis less attractive for long-term UK residents. We help you assess when it’s time to switch to the arising basis to avoid unnecessary costs.
Key Triggers for Tax Liability
Foreign Funds Remittance: Bringing money into the UK from foreign sources can inadvertently create tax liabilities. Understanding the rules around remitting funds is vital for non-doms, especially for large transactions or income from non-UK sources. Global Tax Consulting helps ensure that you manage these remittances strategically.
Tax Planning for Non-Doms
Efficient tax planning is crucial for non-doms. Whether you’re managing income from a foreign property, considering a UK investment, or dealing with inherited overseas assets, planning ahead helps to reduce your tax liabilities while staying within the law. At Global Tax Consulting, we offer strategic guidance tailored to your circumstances. We assess your domicile status, income sources, and financial goals to create a personalised plan that optimises your tax position.
Why Choose Global Tax Consulting?
At Global Tax Consulting Ltd, we pride ourselves on offering expat tax services. Our team specialises in cross-border tax affairs, making us the ideal partner whether you’re moving to the UK, leaving the UK, or managing a global portfolio of assets.
We take a personalised approach to your tax strategy, ensuring that you understand the complexities of UK tax law without the jargon. We offer clarity, practical advice, and step-by-step support to help you make informed decisions. While we’re not accountants, we bring deep knowledge of international tax matters and work with you to optimise your tax affairs.
Ready to Optimise Your Tax Strategy?
We appreciate that non-dom tax can feel overwhelming, but with the right guidance, it doesn’t have to be. At Global Tax Consulting, we offer tailored advice and strategic tax planning to help you make the most of your non-dom status. Whether you’re planning your first move to the UK or are already a long-term resident, our team is here to assist every step of the way.
Get in touch with us for a consultation, and let us help you navigate the complexities of UK taxation with ease.