UK Deemed Domicile Rules Change
Individuals who are residents in the UK but do not have UK domicile (also known as “resident non-doms”) benefit from an attractive tax regime.
Under these rules, a resident non-dom individual with foreign income and/or foreign capital gains can choose to be taxed in the UK on the advantageous remittance basis of taxation by paying a fixed annual charge, also known as the remittance basis charge.
The amount of the remittance charge (£30,000 or £60,000) depends on the number of years the individuals has been benefiting from the resident non-dom status.
However, recently the UK has announced significant changes to this regime.
More precisely, individuals, who have been benefiting from this status for at least 15 years out of the previous 20 years, will lose their resident non-dom status on the beginning of their 16th year of residence in the UK and will be considered as domiciled in the UK and as such they will be taxed on their worldwide income.
What about the resident non-dom status in Cyprus?
To find out more about the equivalent resident non-dom status in Cyprus, please refer to our article: Relocate to Cyprus and be exempt on your worldwide income.
In case you require legal and/or tax advice, you can get in touch with our team.