1 / 8

Taxation of individuals investing in the UK

Taxation of individuals investing in the UK. Anne Healy-McAdam Tax Director. Agenda. Non domiciled individuals Business Investment Relief Tax on Property Non residents Annual Tax Enveloped Dwellings Non Resident Capital Gains Tax Privacy. Non domiciled individuals. Domicile

lsellers
Download Presentation

Taxation of individuals investing in the UK

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Taxation of individuals investing in the UK Anne Healy-McAdam Tax Director

  2. Agenda • Non domiciled individuals • Business Investment Relief • Tax on Property • Non residents • Annual Tax Enveloped Dwellings • Non Resident Capital Gains Tax • Privacy

  3. Non domiciled individuals • Domicile • Remittance basis – income and gains arising in or remitted to the UK • Remittance basis charge arises after 7 years and increases after 12 years • Longer term residents -15 out of 20 years; deemed domiciled • World-wide income and gains • Rebasing at 5 April 2017 • Cleansing Bank accounts pre April 2019

  4. Business Investment Relief • Available for foreign income or gains remitted to the UK used to make ‘qualifying investment’ • Strict deadline • Money must be invested within 45 days • Otherwise taxable • Claim • Qualifying Investments • Direct investment into a company/hybrid or stakeholder company (not to 3rd party) • Ord Shares/preferences • Loan (drawdown treated as new loans)

  5. BIR- Disposal • A Chargeable event can arise: • Company loses its status • Full or partial disposal • Benefit received • 2 or 5 years elapsed no trade commenced • Effect: • Reinvestment within 45 days; or repatriated offshore • To avoid being treated as a remittance • Although part of funds can be retained for CTD to meet CGT on a disposal

  6. Taxation of Property • A person is taxable on profits from property business if land situated in the UK • Non residents Landlords scheme • By application • Must comply with tax obligations • Gross rents • From April 2020 will move to CT rules

  7. Property issues • ATED is flat annual charge based on value of the property • ATED – ‘non natural person’ • high value residential property now property over £500K • Complete ATED return by 30 April, • Relief available on commercial lettings • Non Resident CGT • Rate 28% • NRCGT Return • SDLT higher rates

  8. Privacy Issues • Register of Overseas Entities • Current and new owners • Compliance • Criminal offence, penalties • Crown Dependencies and Overseas Territories • Exchange information on company beneficial ownership • Law enforcement • UK to impose requirement in UK Sanctions AML Bill ( Not Jersey, Guernsey or IOM)

More Related