The cleansing and mixed fund rules present a unique opportunity for non-UK domiciliaries to access clean capital for UK expenditure. Emma Heelis-Adams (Burges Salmon) explains.
Since April 2017 the remittance basis of taxation has not been available to non-UK domiciliaries (non-doms) who have been resident in the UK for at least 15 out of the previous 20 tax years. This change means that many long-term UK residents who were previously taxed on the remittance basis are now subject to tax on their worldwide income and gains.
A quid pro quo for the removal of access to the remittance basis of taxation was the opportunity for non-doms to ‘cleanse’ offshore mixed funds. This opportunity is only available until 5 April 2019 and due to the complexity involved in many cleansing exercises non-doms must act now otherwise they risk not having sufficient time to complete the process.
If untaxed...
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The cleansing and mixed fund rules present a unique opportunity for non-UK domiciliaries to access clean capital for UK expenditure. Emma Heelis-Adams (Burges Salmon) explains.
Since April 2017 the remittance basis of taxation has not been available to non-UK domiciliaries (non-doms) who have been resident in the UK for at least 15 out of the previous 20 tax years. This change means that many long-term UK residents who were previously taxed on the remittance basis are now subject to tax on their worldwide income and gains.
A quid pro quo for the removal of access to the remittance basis of taxation was the opportunity for non-doms to ‘cleanse’ offshore mixed funds. This opportunity is only available until 5 April 2019 and due to the complexity involved in many cleansing exercises non-doms must act now otherwise they risk not having sufficient time to complete the process.
If untaxed...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
