HMRC have now published the promised detailed guidance on the taxation of Non Domiciled UK Residents and the Remittance Basis following the changes in last year’s Finance Act 2008. The guidance can be found on the HMRC Website and runs to over 400 pages. It is slightly disconcerting to note, from the introduction to one of the documents, that….

“….extra examples will be added to illustrate the working of the rules in less straightforward circumstances.”

So, we’ve just got the simple stuff for now!

It is expected that there will be some amendments to the rules announced in the forthcoming Budget.

We will be blogging on Tax Plus Blog and SME Plus Blog on Budget day.  If you do not already subscribe to our blogs click here for Tax Plus Blog or here for SME Plus Blog to ensure you get our comment and analysis as and when it happens.

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Now the dust is settling – a little – on Finance Act 2008, HMRC has issued an updated version of IR20.

The revised booklet has some deletions from the previous versions and an extended text about the operation of the new remittance basis charge. Most usefully there is a flow chart which shows how the charge works. I have a copy pinned to my office wall for quick reference!

There will undoubtedly be continuing uncertainty about the new rules but at least we will know what HMRC’s view is in the main areas. Nonetheless so much of the rules relating to residence are a matter of interpretation and it is wise to seek advice if you are unclear about your personal situation.

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