Spring 2008 Newsletter Content Winter Of Discontent CGT Winners CGT Losers Shifty Business Anything To Declare? Long Arm Of The Law Irreplaceable You Earn As You Pay Ask Questions Later Capital Ideas ISA ISA ISA Referee! Go Green VAT Or No VAT? Taking The Register Close Encounters May Contain Nuts Going Concern Ancient History Business And Pleasure Do Your Duty Know Your Rights Time To Go? Passing The Buck

Anything To Declare? Foreign domiciled people - usually those with a non-UK parent and continuing foreign connections - don't have to pay tax in the UK on the income or gains they make abroad, as long as they leave the money overseas. They pay tax on "remittances" of income or gains into the UK, which means they can choose when and how much tax they pay. Usually they don't pay very much at all because there are many cunning plans to exploit the rules. As announced in the Pre-Budget Report, new rules will come into force in 2008/09 to make the remittance basis much less attractive. There will be a number of detailed changes, but the eye-catching headline affects anyone who wants to use the remittance basis after being resident in the UK for seven of the last ten years - they will have to pay a flat charge of £30,000 for the privilege. It won't matter whether the unremitted income and gains are £10,000 or £10m - £30,000 to HMRC will cover it. The only exception will be for those whose unremitted foreign income and gains for the year are less than £1,000. If you have in the past enjoyed the benefits of the remittance basis, you will need to consider how the rules will be changing in April. We will be happy to help.