Interim guidance on proposed changes to the taxation of resident, non-domiciled and not ordinarily resident individuals who choose to be taxed on the remittance basis for the purpose of UK taxation has now been published.

The changes are included in the Finance Bill and, subject to Parliamentary approval, will come into effect for the 2012–13 tax year. HMRC wish to stress therefore that this guidance cannot be relied upon as final.

Readers are reminded that HM Treasury have consulted on some related issues such as the abolition of the concept of ordinary residence for UK tax purposes, a statutory residence test and Statement of Practice 1/09. Those consultation proposals are not discussed or reflected in this guidance or related documentation.

Broadly the proposals are as follows:-

• A higher Remittance Basis Charge of £50,000 for some non-domiciled individuals who have been UK resident for a long time and who choose to be taxed on the remittance basis.
• The introduction of a business investment relief for remittance basis users.
• A relief for sales of exempt property in the UK.
• Simplification of the remittance basis rules.

More information is available at: http://www.hmrc.gov.uk/cnr/info-remit.pdf