Have you ever wondered why so many rich people from all over the world move to London? It's not just for the restaurants and the football we assure you. It's actually because of a piece of regulation called 'Non Domiciled Taxation', or simply Non Dom.
Interests abroad for Non Doms
The Non Dom regulation means that any non-British person living in Britain does not pay any tax on their overseas income. As long as they don't spend it in the UK, that is. Example: If a wealthy Russian living in London owns an oil company in Siberia that generates her millions of pounds of profit every year, she will not have to pay any income tax on those profits - they are tax-free. Of course this is an over-simplified example. There are some caveats, and legislation has recently changed. Conditions to be considered a Non Dom: For instance, an issue to be aware of is what you need to do in order to be considered a Non Dom, for example if you spend more than a certain amount of days within a year in England you will be considered resident. St Matthew eAccounting will help you understand the changes and regulations in connection with your specific situation during an initial consultation. Interested? Get started now with a consultation! Being a Non Dom: An option for me?Having 'interests abroad' may sound like it only applies to the super-rich, but it does not. Considering a move to the UK may be a very interesting option if: - You have significant income of investments
- Shares you own
- Companies you own
- You have the flexibility to move
- You have more than one place to live
Obviously, if your foreign income is a few thousands from rent income than this might not be the right solution for you. Planning and preparation is best
If you think Non Dom may apply to you it is best to consider this at the outset. In certain scenarios it may make sense to set up an Irish company rather than a UK company as profits from this venture would count towards your overseas income. Interested? Get started now with a consultation! Even more information
We also have more information on Non Dom in our Fast Facts sections for any further questions on details and rates surrounding non dom taxation.
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