Non-domiciled individuals


  2016/17 2015/16
Income limit - remittance basis automatic £2,000 £2,000
Medium term resident - 7 of the previous 9 years £30,000 p.a. £30,000 p.a.
Long term resident - 12 of the previous 14 years £60,000 p.a. £50,000 p.a.
Long term resident - 17 of the last 20 years £90,000 p.a. £90,000 p.a.
Capital gains tax rate 20% 28%


The remittance basis of taxation for non UK income and gains must be claimed by most taxpayers who are UK resident but not domiciled here, or not ordinarily resident.

Those with unremitted foreign income and gains below the limit of £2,000 are automatically entitled to the remittance basis, with no loss of personal allowances.

Where the remittance basis is claimed the taxpayer loses his right to UK income tax personal allowances and capital gains tax annual exemption.

For those who have been resident for the year of claim and meet the previous residency conditions shown, the remittance basis is only available on payment of the amount shown, as a tax charge on unremitted income and gains. This payment is in addition to the tax on remitted income and gains. The charge does not apply to children aged under 18. The change counts as UK tax paid for the purposes of Gift Aid.

If funds are remitted to the UK to pay the remittance basis charge, tax will be due on any remitted income in the normal way. However, it is permitted to pay the charge direct from a foreign source and avoid additional UK tax.

Beyond 2016/17

From April 2017:

  • non-domiciled individuals will be deemed UK domiciled for tax purposes if they have been a UK resident for 15 of the past 20 years, or if they were born in the UK with a UK domicile of origin
  • inheritance tax will be charged on UK residential property when it is held indirectly by a non-domiciled individual through an offshore structure, such as a trust or a company
  • the government will make it easier for non-domiciled individuals who are taxed on the remittance basis to bring offshore money into the UK to invest in UK businesses and to claim business investment relief.
  • From April 2017, any individual who is born in the UK to parents who are domiciled here will not be eligible to claim non-domicile status while they are resident in the UK.