Encouraging those who want to live and invest in the UK

Non-doms will be able to remit income and/or Capital Gains Tax free for the purpose of commercial investment in UK businesses.

This saves the tax that would have otherwise been payable on the amounts remitted. Following a consultation this will establish what investments will qualify, but in general this is designed to encourage those who want to live and invest in the UK.

The remittance basis charge increases from £30,000 to £50,000 for non-doms who have lived in the UK for 12 years. There will be no other substantive changes to the tax regime for non-doms for the remainder of this Parliament.

Removing the tax charge on remittances for those investing in the UK is aimed at encouraging more investment. A further consultation document will be published in June. However, it’s still unclear whether other countries (particularly the US) will accept the remittance basis charge as a tax charge and so creditable against tax liabilities incurred on the same income in those countries.