NON-DOMICILED INDIVIDUALS making remittances to the UK are to be targeted in an HM Revenue & Customs campaign in an effort to reduce errors.
Letters are to be sent out to taxpayers not domiciled in the UK who were taxed on remittances for 2011/12 after HMRC research found taxpayers may not understand fully what a remittance is and, as a result, have some difficulty in completing their tax return accurately.
The term ‘remittance’ refers to a sum of money or asset brought into , or enjoyed in, the UK. A non-domicile is an individual who, while resident in the UK, treats another nation as their permanent home.
The letter provides examples of what can be considered a remittance and circumstances in which they could be liable to tax.
While the primary purpose of the letters is educational, it is hoped they will prompt non-domiciles to seek help in the area or declare any omitted remittances from previous returns.
Watt Busfield co-founder and partner Rebecca Busfield said: “If taxpayers discover they have made errors in their tax returns relating to remittances to the UK they should make a voluntary disclosure to HMRC to reduce potential penalties.”
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