Non-doms receive tax break for investing in UK businesses
As part of its draft legislation for the Finance Bill 2012, the government has outlined changes to the way non-doms are taxed, which will come into force on 6th April 2012.
In addition to an increased remittance charge for individuals who have resided in the UK for 12 of the last 14 tax years, the tax usually charged on overseas income or capital gains brought into the UK will be eliminated when these funds are invested in an eligible stakeholder or trading company.
To qualify, the business must be a private limited company and be carrying out trading activity or undertaking the development or letting of commercial property.
Specific anti-avoidance measures will also be introduced to ensure that this new tax exemption is not exploited.
