Clarification on UK Tax Rules for Non-Domiciled Residents Regarding a Remote Contract Work

Hello, I'm a non-domiciled but UK-tax resident. On the following webpage, it states that "You do not pay UK tax on your foreign income or gains if you not bringing them into the UK". https://www.gov.uk/tax-foreign-income/non-domiciled-residents Could you please clarify if this rule is applicable to income from remote contract work if the work is going to be done for a non-UK company that has no presence in the UK, but the non-domiciled contractor resides in the UK? Or it applies only to gains from non-UK investments, such as bank interest or dividends. Thanks

Hi Cardinal,
As the work is for a non UK company, this is foreign income and would qualify under the remittance basis rules.
Thank you. 
 

Thank you for your response. I have another question as well: Are non-domiciled obligated to pay the remittance basis charge (£30,000 after seven years and £60,000 after being 9 years in the UK) for each subsequent year following the seventh year, even if they opt for the arising basis taxation for that particular year? Furthermore, if they choose the arising basis taxation, do they retain their personal allowance for that year as well?

Hi,
 

Yes.  If you choose to use the remittance basis and you are resident in the UK for 7 of the last 9 years, then you lose your personal allowance and will be taxed on £30000.00, on  top of your UK income.  The figure of £30000.00 will be applied each year you use the remittance basis until you are resident for 12 of the last 14 years.  This figure then goes up to £60000.00 and is used until you are resident for 16 years, after this, you are deemed domiciled a nd can only be taxed on the arising basis on your world wide income.  Guidance on the remittance basis can be found at : Guidance note for residence, domicile and the remittance basis: RDR1   . Thank you.

Hi, Thank you for your explanation. To confirm: After year 7, if I choose not to use the remittance basis, am I correct in understanding that I won't have to pay the remittance basis charges (£30,000 and £60,000) and I'll retain my personal allowance for each year I opt for the arising basis on both my UK and non-UK income?

Hi Cardinal,
You are correct.
Thank you. 
 

Hello, I moved last year to UK and currently paying basic rate. I also had income from interest in India over threshold for which I paid tax in India. How do I need to file my self assessment to avoid double taxation on the India interest? Also, for a non domicile and UK tax resident, do we lose allowance of 12750 GBP when we file taxes in UK?

Hi ,
 

Please refer to  : Remittance basis 2024 (HS264)  .

Thank you .