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Residence and Domicile - update

Tax Alert April 2009

The Finance Act 2008 introduced a number of changes to the taxation of individuals with residence or domicile issues. From 6 April 2009 tax payers affected by these changes should note the following recent announcements by HM Revenue & Customs: (If you would like more details please call.)

  • New HMRC Guidance - A number of new guidance manuals will be available from this date, or shortly after this date, covering residence and domicile issues.
  • Change of forms - A number of the past standard forms have been withdrawn or changed.
  • Enquiries into domicile status - For 2008-09 and later years enquiries will be started by an enquiry into the taxpayers self assessment tax return.
  • Remittance basis - An individual, who is entitled to claim the remittance basis of taxation but whose total unremitted foreign income and gains is less than £2,000 in any tax year, can use the remittance basis without having to make a formal claim.
  • £30,000 Remittance basis charge - Most individuals who pay the £30,000, or have paid it in the past, will have their tax affairs dealt with by a specialist CAR Residency office, Nottingham from 2009-10.
  • PAYE and ‘not ordinarily resident’ employees - Employers can still seek clearance to not apply PAYE to certain employees who fall into this category.

Hilton Sharp & Clarke