Non-doms: how the remittance basis charge will work

The government’s plan to overhaul the tax status of non-doms with the introduction of a higher remittance basis charge (RBC) from April 2015 may be complex and punitive, says Ray McCann, partner and head of the private wealth tax practice at Pinsent Masons LLP, but you need to get to grips with the new rules quickly to ensure complete tax compliance

There is no escaping the fact that how domicile status affects an individual's tax liability is difficult to explain in a way that appears fair.

The UK is almost unique in how we tax resident non-domiciled individuals - non-doms - and in recent years the sensitivity around what are typically portrayed as ultra-rich non-doms living in the UK but paying little or no tax (or buying all the homes in London) has distorted and over-simplified a much more complex picture.

Of course, the UK is not unique in having tax rules that appear unfair, ask the mayor of London, Boris Johnson.

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