Expatriate Magazine (13)

AC C O U N T I N G
NO N -DO M I C I L I A R Y TA X E S
Mark Walters, senior partner at leading US/UK Tax Advisory ﬁ rm Frank Hirth, guides us through the
mineﬁ eld created by the latest budget for UK non-domiciles.
A
fter the 2008 Budget, a considerable balance of City whether or not they should be taxed on a worldwide basis or
opinion saw the tax changes in legislation around pay the £30,000 levy.
the community of non-domiciled individuals
here as harmful to the UK. So with Alistair Darling’s latest For American’s amongst the non-domicile population
budget following the credit crunch, this view seems to have there remains open questions around whether the £30,000 is
been cemented for this and a wider community. creditable and, whether US and other offshore interests are
compatibly treated in the UK with any treatment overseas,
Increasingly there is a long tail of regulation on both exchange rate issues producing anomalies and so on.
sides of the Atlantic, and certainly ﬁ nancial services
regulations have proved in need of some review. However,
‘FI N D I N G A W A Y T H R O U G H T H E
there are ﬁ ne lines to walk in terms of London as an attractive
M I N E F I E L D T O P L A N A S A N O N -
place to do business. Lest we forget, in the time following
D O M I C I L I A R Y H E R E I N T H E UK
Sarbanes Oxley enactments in the US during the early part
of the century, London as a centre for deals boomed.
H A S N E V E R B E E N M O R E I M P O R T A N T
I N L I V I N G M E M O R Y .’
There is intent laid out in this latest Budget to alienate
tax products, impose greater penalties, and move to tax All this, along with keeping another eye on planning
business leaders/entrepreneurs from home and abroad at forward in the year to 5 April 2010, plus the ramiﬁ cations
higher rates and with greater levels of complexity. for some of the withdrawal of personal allowances on
income above £100,000, and a higher band to be applied
So for the non-domiciled individual, the full ramiﬁ cations now at 50% from 6 April 2010. Couple this with the intent
of the changes from 2008 will have to be considered in the to reduce higher rate tax relief income between £150,000
coming months in regard to the ﬁ rst UK tax ﬁ ling following and £180,000 (essentially charged at 30% on that pension
those enactments in income) for those above the £150,000 earning limit.
respect of the year
ended 5 April 2009. The attractiveness of converting income to capital gains
There will be a need in limited cases, where possible, has never been greater.
to have one eye on the Finding a way through the mineﬁ eld to plan as a non-
complexity for many domiciliary here in the UK has never been more important
which comes from in living memory.
those changes in the
context of new rules
OM
.C on remittances, the Mark Walters (left) is a senior tax professional and a Director
diminishing availability of Frank Hirth Plc. specialising in US/UK individual tax
of allowances and relief planning and compliance. For more information, contact
DREAMSTIME
by claiming this status Mark Walters, Frank Hirth at +44 (0)20 7833 3500, or by
GES;
and, certainly for those email at MarkW@frankhirth.com or visit their website at
OCK IMA
here for seven years, www.frankhirth.com.


C
OMST
the whole question of
EX P A T R I A T E 43
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