Exceptions to the rule will be granted in cases in which mortgages were arranged before March 12, provided the terms of the loans do not significantly change
Accountancy Age, 26 Aug 2008
Interest-only offshore mortgages will be counted as income remitted in the UK, according to new tax rules for non-domiciled UK residents.
According to accountants from Grant Thornton, the rule was now losing it's appeal for foreigners who have lived in the UK for seven years or more.
Non-doms residing in the UK have to currently shell out £30,000 to avoix being taxed on foreign income and gains.
'Interest-only mortgages taken out offshore to purchase UK properties have been a well-used mechanism in the past. But since Budget Day in March, they are now treated as a remittance,' said Grant Thornton's national head of tax Francesca Lagerberg.
Exceptions to the rule will be granted in cases in which mortgages were arranged before March 12, provided the terms of the loans do not significantly change.
In addition to offshore mortgage payments, non-doms are also being taxed on art, cars, yachts and other assets purchased with the offshore funds brought into the UK.
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