Could non-doms find themselves paying tax twice in two countries?
If you have income in one country and are resident in another, you may be liable to pay tax in both countries under their respective tax laws. To avoid ‘double taxation’ in this situation, the United Kingdom has negotiated double taxation treaties with more than 100 countries. Each treaty is called either a ‘Double Taxation Agreement or Convention’, depending on the wording of the treaty. To avoid double taxation, the original proposals were amended so that the £30,000 charge is now imposed on specified income or capital gains abroad and should be treated as such for the purposes of the Double Taxation Agreements. (This may, however, not apply to certain countries, so it is always best to seek independent advice on your tax status). What else does the new law affect? The budget’s measures go beyond the £30,000 charge; other elements may pose larger problems. For example, if you buy an asset on your holiday – say an expensive souvenir such as an artwork or a car – from your overseas mon
Related Questions
- New Owners Question: (a) Why didn I receive a tax notice? (b) Am I responsible for paying the redemption amount since the property was sold in the tax sale or is the previous owner responsible?
- Am I exempt from paying Tax on profits made in the U.S. in my country of residence (Country of residence for tax purposes)?
- What are the penalties for not paying the tax?
