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Non Domiciled - Remittance Basis - Foreign Tax Reliefs

If you are Non UK Domiciled you may be entitled to Tax Relief in the UK.

Your Domicile status is similar to your Nationality. You will generally be Domiciled in the country where your 'roots' are or where you have a permanent home. There are three main types of domicile. These are: domicile of origin, domicile of dependence and domicile of choice. You Self Assess your Domicile status in the UK and for more guidance on your Domicile Status please get in touch.

Remittance Basis

If you are non UK domiciled you will be entitled to claim the Remittance Basis of Taxation. This means you will be able to exempt foreign income from UK Taxation as long as you do not bring the foreign income 'remit' to the UK. In order to claim the remittance basis of taxation you have to make an election on your Tax Return and you may lose your Tax Free Personal Allowance.

Therefore, it is worthwhile performing a calculation to check which method of taxation is most beneficial for you.

Please get in touch if you would like to explore exempting your foreign income from UK taxation and making use of the remittance basis.

Overseas Workday Relief (OSWDR)

If you are Non UK Domiciled and spend time working overseas, you may be able to exempt the proportion of your Salary (even if paid from a UK Company) relating to your overseas workdays from UK Taxation. For instance, if you spend 30% of your time working outside the UK you could potentially exempt 30% of your salary from UK Taxation and claim a Tax Repayment on your Tax Return.

This is only available for the first 3 Tax Years you are in the UK. You also need to receive your salary into an offshore bank account. You can set up an offshore bank account with many of the UK High Street Banks where they will you provide you with an account based offshore (E.g. Channel Islands) which will have a UK Account Number and Sort Code. You will need to retain the % of your income relating to your Overseas Workdays outside of the UK and within this offshore account in order to be eligible for the relief.

Please get in touch if you would like any further guidance on the above Tax Reliefs - SC Tax Call

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