London - A Tax Heaven for Wealthy Foreigners
Rich people from all over the world live in London, and not for its climate, but for its ultra-favorable tax regime. The tax status of non-domiciled - known as UK Non-dom or UK Non-domicilied - has been very popular for several years, and it will last a long time, especially in times of crisis!
If you do not have a British passport and your parents are not English, you can live in Great Britain without paying taxes on your Overseas earnings, as long as they are not repatriated locally.
It all depends on the definition of "resident" and "domiciled" in UK tax legislation.
0% tax by living in London, it's possible!
The status of UK Non-dom is relatively easy to obtain: it is sufficient to declare to HMRC that one wishes to settle in the United Kingdom for a temporary period, and that one therefore wishes to opt for the UK No regime. -dom.
From there, you will only be taxed on your income generated in the United Kingdom and the funds that you make (remitted) to the UK after your installation in the country.
On the other hand, HMRC will not impose on you any more funds that you could bring to the UK as long as they were generated before your installation in the country.
For example :
You have today 300.000 EUR on a bank account
Then you move to London and opt for the UK Non-dom scheme
And finally you transfer your 300,000 to your bank account in London
You will not owe any tax to HMRC on this € 300,000 from the moment you can show that you had them before you arrived in the UK. And you can freely dispose of it on a daily basis.
HMRC will not ask you for a list of your foreign funds or investments or even offshore companies, only your funds generated or imported locally interest them.
It is therefore possible to move to London and pay 0% tax . Here's why there are so many rich and luxury cars in this city!
What are the limits of the UK Non-dom status?
If you transfer funds to the Kingdom after your arrival , and these were also generated after your arrival, you will have to pay taxes on the amounts transferred. This is the principle of remittance basis.
You can opt - or not - each year for UK Non-dom status. And depending on the duration you may be subject to a flat fee for non-dom long-term residents:
Non-dom residents who have spent less than 7 years in the United Kingdom over the last 9 years pay no fees
Non-dom residents having spent more than 7 years in the United Kingdom over the last 9 years pay a fee of £ 30,000 per year.
Non-dom residents having spent more than 12 years in the United Kingdom over the last 14 years pay a fee of £ 50,000 a year.
Beyond 17 years of residence in the UK, it becomes very difficult to maintain UK Non-dom status.
Depending on your income, even a flat fee of £ 50,000 a year can be attractive, so it is important to get organized well before moving to London, so you can enjoy this plan in the best conditions.