The government has published the responses to the consultation on the proposed minimum claim period for the remittance basis charge for non-UK domiciled individuals.
At Autumn Statement 2014, the government announced it would consult on making the claim to pay the remittance basis charge apply for a minimum of 3 years, so that non-UK domiciled individuals could not easily arrange their tax affairs so as to only pay the charge occasionally. The consultation sought to better understand the reasons why individuals choose not to pay the remittance basis charge consistently from year to year. It also sought views on how a minimum claim period for the charge might apply, but also any alternatives that would also meet the government’s objectives.
Respondents did not support the introduction of a minimum claim period for the remittance basis charge. It was argued that there is very little evidence of individuals actively arranging their affairs to plan around the remittance basis charge and that the fluctuation of income and gains from year to year was more likely to be the reason for an individual opting in and out of paying the charge. It was also considered to be complex and unnecessary because of the scale of the issue. Some responses indicated that if the government wished to take action then there would be greater support for restricting the ability to pay the remittance basis charge for a period of time once an individual chooses not to pay the charge.
As a result of significant reforms to the taxation of non-UK domiciled individuals and the responses to the consultation, the government announced at Summer Budget 2015 that it will not introduce a minimum claim period for the remittance basis charge.
HM Treasury, Summary of responses on minimum claim period consultation, July 2015
