The remittance basis is an alternative way of assessing for income tax and is very advantageous. Accessing it, however, depends on the domicile status of the taxpayer.
Domicile, not to be confused with residence, is a complex area of law and especially so for internationally mobile clients. Broadly, it is the concept of a permanent home, which is defined largely by social ties, and the intentions of an individual. During a consultation with one of our advisers, we consider your family history and draw on our knowledge of case law to help determine your domicile. We can advise on whether it is better for you to choose to be taxed on the remittance basis and reduce your tax bill.
Mark Davies & Associates are seeing frequent enquiries into domicile status by HMRC and we have successfully defended the domicile status of our clients. We can advise on how to maintain non-domicile status and make a robust claim for an alternative domicile.
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Domicile and Inheritance tax
Questions of domicile and residency are also very important when looking at inheritance tax. Some clients with a UK domicile who have taken steps to replace it with an alternative domicile may still be “deemed” UK domiciled and have inheritance tax due on their estate for 3 years, whilst those UK tax resident for 15 out of the previous 20 tax years are automatically deemed UK domiciled. We are experienced in estate planning to ensure that you do not fall foul of a costly 40% inheritance tax bill.