Year End Tax Review 2008 Contents New Year's resolutions Investment limits Borrowings and tax Family tax planning Mr and Mrs Give generously and save tax Jam today, or jam tomorrow? Tax payback - tax credits Bringing it back home Children's pensions? A matter of trust Children's savings? All change for gains Second homes Portfolio gains Capital ideas Tax-free perks Employee pensions and NIC Pension policies Employee cars and fuel Business tax Pay rise for the other half? Company or trade Two jobs = too much NIC Should VAT be flat? VAT and cash Inheritance tax One careful owner

Bringing it back home For many years, foreign domiciled people have enjoyed a tax break in the UK on their foreign income - if they leave it overseas, they don't have to declare it here. Successive Governments have reviewed what to do about this, and Alastair Darling has finally decided to act. The final version of the rules may be different, but the plan announced in October is that people who have lived here for 7 years will have a choice: pay tax in the UK on your worldwide income, or pay a flat charge of £30,000 a year. This will apply from 6 April 2008. It's an easy calculation to see that you will be better off paying £30,000 if your overseas income is more than £75,000. However, many people with substantial foreign assets and connections may do the even easier calculation and decide it's cheaper to live somewhere else. Anyone who has been using the "remittance basis" and has lived in the UK for 7 years should be reviewing what they will do in 2008/09. Action Point! Do you currently pay tax on remittances of foreign income?