Non Dom taxation (UK)

It appears that huge numbers of rich people want to live in the UK, but not pay full taxes here. I would be happy to reduce the amount they pay, by deducting whatever they pay in another country (their domicile). It now appears that our daft tax system allows them to reduce their UK liabilities even more by claiming overseas capital losses, on which they avoid income tax against UK Capital Gains Tax.
Is this right? I am sure its immoral

4 OVERSEAS CAPITAL LOSSES

Under what is known as the remittance basis of taxation, those not domiciled here do not pay tax on income and gains arising overseas unless they bring the monies into the UK. However, they must make a specific claim each year if they want to get UK tax relief for capital losses on overseas assets.

If overseas capital losses were made in the 2008-9 tax year, these can be set against capital gains overseas and in the UK. Choosing to do this will not always be advantageous, as it first sets all losses against overseas gains, even if they are not remitted to the UK. This can mean that UK gains, which would otherwise be covered by UK losses, are left within the charge to capital gains tax, so it is essential that non-doms seek professional advice before taking this course of action.
roysses
Asked Mar 20, 2010

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