Treasury consults on non-dom three-year remittance charge

As part of the government’s clampdown on tax avoidance, HMRC and the Treasury have released a joint consultation on plans to set a minimum claim period for the tax remittance base charge for non-doms at three years, a measure first announced by the Chancellor in the Autumn Statement 2014.

These proposals would mean that non-doms would have to make the election to pay the remittance basis charge apply for a minimum of three years. Therefore, the remittance basis charge will be payable for three consecutive years, whether or not overseas income and gains are actually remitted into the UK.

This would mean, for example, that an individual who has been resident for more than 17 out of 20 years would be committing to pay £90,000 in each of the three years if they chose to claim the remittance basis.

It is intended that this minimum claim period will take effect in the next parliament, from April 2016.

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