With effect from 6th April 2025, the tax rules for non-doms will be abolished and replaced with a new regime.
Non-residents who return to reside in the UK and who have qualified as not-resident for the previous 10 tax years can opt for their overseas income and gains to be exempt from UK tax for the first 4 tax years of UK residence. Thereafter, they will be liable for UK tax on worldwide income and gains.
However, if opting for this method they will lose their entitlement to claim the tax free personal allowance and annual capital gains tax exemption.
Transitional rules will apply to current UK resident non-doms who move from the remittance basis to the arising basis and do not qualify for the 4 year rule.
Baktax 06/03/24
Making Tax Digital for Income Tax and Self Assessment (MTD for ITSA) - digital record keeping and quarterly reporting - the replacement for the self assessment tax return, has once more been delayed even further !
This will not now start until 6th April 2026. Only then will it apply to those sole traders and landlords with gross income over £50000. Those with gross income of £50000 and under but over £30000 will join MTD for ITSA from 6th April 2027. The Government is to review how those with income of £30000 and under will report their income. General partnerships will join at a later date to be annonced.
For landlords where the rental property is jointly owned, the threshold(s) mentioned above relate to each individual landlord’s total share of the gross rents and not the total gross rents from the property.
Quarterly filing is to be made within 30 days of the end of each quarter i.e. 5th July, 5th October, 5th January and 5th April to avoid penalties.
Baktax 20/12/22
With the closure of HMRC's offshore disclosure facilities on 31st December 2015, the incentives of a reduced penalty for the declaration of previously undisclosed income and gains to bring one's tax affairs up to date are no longer available. (That is with the exception of the Let Property Campaign which is still available to declare income from rental property).
However, a Worldwide Disclosure Facility was opened in 5th September 2016 to give a last opportunity for declarations to be made, before HMRC introduce new tougher sanctions from 1st October 2018.
100 countries have signed up to exchange information on a multilateral basis which will dramatically increase transparency for international tax purposes.
Baktax 21/09/16