In Europe, when it comes to offshore companies and tax havens, we often think of London. For, indeed, if all eyes turn to this capital it is because foreigners settling there can easily obtain a status that allows them not to pay taxes for many years.
The non-resident status
The most protected tax status in London is the so-called UK non-dom (or UK non domicilied). This is the status that many expatriates adopt when they should not live too long in the UK. For more than 7 years in the UK over the last 9 years, residents will have to pay £ 30,000 per year tax. And this tax will rise to £ 50,000 if you are residents for more than 12 years over the last 14 years. But for a period of less than 7 years on site it is easy to pay no tax in London. This is one reason why wealthy industrialists go in this city, besides the fact that it is the centrality of oil and finance.
The advantages of Non-Dom status
When you install in the UK, you must make the option for non-dom status. You just have to simply report to the HMRC that you want to install on a temporary basis in London and opt for this status. From that moment, you will be taxed on income that you generate in the UK, as well as the income that you will pass to the United Kingdom. However, it is possible not to be taxed on the income you transit to the United Kingdom. You just have to prove that this is an income that you had before settling in England. If you have proof, these amounts that you will bring in the UK will not be taxed and you can use them as you like. By cons, if you transfer funds that were generated after arrival in the UK then you have to pay taxes on these amounts.
Some recent changes
In 2013, the Not Dom status has been slightly modified. However most of the ongoing benefits continue to exist. Others came to be added to them. For example, you can enjoy this Non-Dom status if you spend at least 91 days a tax year over a period of 4 years in London. If you stay longer than the seven years provided for resident, you can then choose the resident status. You have to pay taxes on your earnings. But the tax on entrepreneurs ‘dividends is such as you can have a very low income tax. Remember also that to be Non-Dom you should not have a British passport or have English parents. Finally, the revenues generated outside the UK are not taxed if they do not enter in the country. Therefore, you can have outside incomes and used them outside the country without being taxed on them.
Share the post “UK non Dom status in the UK”