Domicile & Residence
The last labour Government abolished a system of taxing 'non-doms' that dated to the time of the Napoleonic Wars! The present coalition government have introduced changes to the residency rules. Meanwhile, new agreements with countries such as Switzerland mean that HMRC is looking carefully at taxpayers with overseas connections.
Foreign nationals and those who spend substantial time abroad need expert help to make sure that they do not fall foul of the new regime. In some cases, this need only involve changing their investments. Did you know that a non-domiciled individual can escape UK tax (and does not have to pay the £30,000 levy) if his money is invested in an offshore bond and he takes no more than 5% p.a. from the bond?
We obtained a repayment of over £47,500 for a client whose residence status was such that he was entitled to claim relief for workdays spent abroad. While reviewing his affairs, we noted that he had prepared a tax return for an earlier year himself and had not claimed a similar relief for that year - as a result, HMRC agreed a further repayment of £3,500 plus interest!