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Non-doms should get advice from a contractor accountant

Non-doms should get advice from a contractor accountant

Non-domiciled individuals should seek the advice of a contractor accountant, as they may qualify for tax benefits.

Calculating whether or not a UK non-dom is eligible to benefit from tax planning opportunities is complicated and depends on various factors, including the length of time they have been resident in the UK.

Robin Sewell, a managing partner at chartered accountancy firm Midgley Snelling, said non-doms would be best advised to seek advice before they take up residency in the UK, but it is also worth foreign nationals checking to see if opportunities are available, even if they have been resident here for some time.

He went on to stress that careful implementation is necessary and it is vital that overseas income, gain and assets are recorded correctly.

There has been a significant drop in the number of people registering for non-dom status in the UK since an annual levy was introduced and the inheritance tax laws changed. In May it was reported that the number of registrations had dropped by 16,000 since 2008 when the £30,000 levy on non-doms living in the UK for longer than 7 years was introduced.

People who were born outside the UK, but are long-term resident here, can claim UK non-dom status. They do have to pay income tax on UK earnings, but any earnings abroad do not attract UK tax providing they remain offshore.

In his last budget, George Osborne announced that the levy on non-doms was to increase to £50,000 for people who have resided here for 12 years. The government expects that move to raise an additional £200 million over the coming years. However, the Chancellor said he wanted to encourage overseas investment and would remove the charge non-doms pay if they remit capital gains or foreign income to the UK to invest in a UK business.

© 2011 All rights reserved. Reproduction in whole or in part without permission is prohibited.

Image: Collected Advice by awezmaz

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