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UK tax year-end planning: non-UK domicile rules.

The reforms of the non-UK domicile rules took place from 6 April 2017, however now is still a good time to consult with your advisor to see whether there are some income tax or inheritance tax planning. 

In particular, if you have ever claimed the remittance basis of taxation and have unremitted funds outside the UK which would be taxable if funds are remitted to the UK. Assuming the funds are held in an overseas account that has a mix of untaxed income / gains and clean capital, there is still an opportunity to cleanse mixed funds before 6 April 2019 and remit the segregated capital to the UK tax free. Time is short for any detailed mixed fund cleansing analysis, however it could be worth estimating and under-nominating clean capital before 6 April 2019 as a backstop, and finalising the analysis in the future so long as there are no remittances to the UK until the full analysis has been completed.

What should I do?

If you are interested in cleansing your mixed funds offshore, the ability to cleanse ends on 5 April 2019. You need to consult with your advisor as soon as possible and put a plan in place.  It may be too late for any detailed line by line analysis, however, it could be that the detailed analysis happens after 6 April but there could be time for an estimate and an actual nomination of clean capital before 6 April.

Follow the relevant links below to read more:

We recommend that individuals seek professional advice where appropriate before taking any action, so please fill out the form below if you have any questions. 

 

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