FAQ: Residence and domicile - personal allowances

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Will all non-domiciles lose their personal allowances?

No. Only non-domiciles who choose to claim the remittance basis and have £2,000 or more of unremitted foreign income and gains arising in that tax year will lose their allowances.

I am a resident non-domicile and I wish to retain my personal allowances. Is this possible?

Yes. If you choose to pay tax on the arising basis, you will be eligible for personal allowances and the annual exempt amount for capital gains. However, if you choose to pay tax on the remittance basis, you will lose your personal allowances and the annual exempt amount for capital gains, unless you have less than £2,000 of unremitted foreign income and gains arising in a tax year.

If I pay the £30,000 for access to the remittance basis, will I retain my personal allowances?

No. If you pay tax on the remittance basis, you will lose your personal allowances and the annual exempt amount for capital gains.

If I opt for the remittance basis, will I lose access to the annual exempt amount, even if I have no foreign assets?

Yes. If you pay tax on the remittance basis you will lose access to the annual exempt amount and personal allowances.

I am domiciled in the UK but not ordinarily resident. How do the proposals affect me?

If you are eligible to claim the remittance basis and do so, you will lose personal allowances and the annual exempt amount for capital gains tax and, depending on how long you have been resident in the UK, you may also be required to pay the £30,000 charge.