Earlier this year, HMRC sent a letter to many UK resident but non-domiciled taxpayers to assist them in getting their tax returns right by explaining the meaning of a remittance. HMRC included a number of examples where a remittance of foreign income may arise in circumstances which perhaps might be overlooked by the taxpayer, and these have now been incorporated into the department’s Residence, Domicile and Remittance Basis Manual. Given the complexity of the legislation, this was extremely helpful. Unfortunately, some of the examples were a bit extreme, and some were seriously doubtful. This is a pity because most of the examples were very useful, and the unnecessary inclusion of dodgy examples detracts from the obvious merit of this initiative.
Article first published in Tax Journal on 20 December 2013