HMRC nets offshore mortgages
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
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.
Further reading:
Offshore mortgage blow for non-doms