Non-domicile

[rootsnall]

Anyone who doesn't want to pay the 25K has a simple alternative - declare all of their overseas income in the UK and pay tax on it. Oddly, this is exactly the option that they would have if they lived permanently in any country other than the UK.

Beat me to it ! Stops any salaried types from using the loophole.

It does seem bizarre that the labour party have not closed this loophole ( as promised when in opposition by GB ) and have got away with it.

[meridian]

Oddly, this is exactly the option that they would have if they lived permanently in any country other than the UK.

Or Ireland...

[mace]

I confess

I did look at this as my wife's a foreigner and I figured I could channel some money in to an offshore bank account in her name. I gave up on the idea, however, for the following reasons:-

1. The offshore bank accounts interest rates (at least in Jersey/Guernsey) were lower than the UKs, so the saving wasn't that great.

2. Bank accounts aren't exactly a great place to put excess cash, as they're relatively poor performers.

UK onshore bank account
===================
Gross = 6.5% interest
After 40% tax = 3.9% net
Inflation = 1.9%
Return on Investment = 3.9-1.9 = 2%

Offshore bank account
=================
Gross=5%
Inflation=1.9%
Return on Investment = 3.1%

ISA
===
Gross=8% per year (historical average)
annual management fee=1.5%
Return on Investment=5.5%


Other posters have pointed out that any income made in the UK is taxed. Non-dom status is only for offshore investments in tax havens. If Tories impose a £25k flat tax, I'd imagine non-dom status will be a lot less attractive.

[beermeister]

I'm non dom (born overseas and so are my parents) and briefly looked into offshore companies, but I reckon you need to be on mega bucks to make it worthwhile, not a measley hourly rate.

You normally acquire domicile from your father, oddly enough. You can choose a domicile, but as you can imagine, it's not as easy as filling in a form.

If you're serious about it, do some research on google.

[tim123]

Or Ireland...

Ireland abolished their non dom rule about three years ago.

tim

[meridian]

Ireland abolished their non dom rule about three years ago.

tim

Errm, you'd better tell the Irish revenue that then. According to http://www.revenue.ie/index.htm?/revguide/incometax.htm, "An individual who is domiciled abroad but who is resident in the State is taxed only on so much of his/her income which arises outside Ireland and the United Kingdom as is remitted to the State."

[tim123]

Errm, you'd better tell the Irish revenue that then. According to http://www.revenue.ie/index.htm?/revguide/incometax.htm, "An individual who is domiciled abroad but who is resident in the State is taxed only on so much of his/her income which arises outside Ireland and the United Kingdom as is remitted to the State."

OK, perhaps they only abolished it for Brits :-(

tim

[meridian]

OK, perhaps they only abolished it for Brits :-(

tim

Sort of - any non-domicile in Ireland is required to account for income derived in the UK as well as Ireland.

Not too sure how this works for Brits in Ireland that derive income from outside the UK/Ire though. Given that it's possible to be a Brit but only have an Irish passport (i.e. from Norn Iron) there's bound to be some sort of cross-border rules.