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Private Client Tax Case Study

Client’s Request:

An individual who had always been non-UK resident and non-UK domiciled had been spending more time in the UK over the last few years.

They formed an intention to move to the UK for an extended period of time for family reasons and needed to understand their UK tax position now and moving forward. It also needed to be considered that they require substantial funds to maintain their lifestyle.

How We Helped:

In the first instance we reviewed the residence position of the client and their family for tax purposes.

We prepared a comprehensive report for the client in respect of their family’s UK tax residence position. This report also explained how the UK tax system worked in respect of identifying whether or not an individual is resident or non-resident for tax purposes.

Another important step was to advise the client on how to bring funds to the UK from overseas in a tax efficient manner under the remittance basis. The remittance basis was advantageous to the individual due to substantial overseas earnings which could be protected from incurring a UK tax liability providing it was not brought to or used in the UK.

Again we prepared a comprehensive report on how the remittance basis of taxation worked for non-domiciled individuals to assist them with structuring their affairs. This would enable them to bring funds to the UK in the most tax efficient manner possible from a UK perspective.

We liaised with the client’s overseas advisers and family office throughout this process.

The Result:

The position was complicated by the fact that advice was sought after the individual had already become UK resident.

However, we were still able to assist the client in identifying specific sources of funds which they would be able remit to the UK without incurring a tax liability, as well as further funds which could be remitted with minimal exposure to UK income tax and capital gains tax.

We continue to assist the individual with their tax compliance requirements and provide ongoing advice on their UK tax position as queries arise.

Where an individual who is non-domiciled intends to move to the UK and is likely to become UK resident as a result, it is imperative that they seek tax advice prior to becoming UK resident to enable effective planning.

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